image credit : Flickr/Danny Choo

New York based hedge fund Tiger Global notable for being a major investor in the technology industry having marked very successful investments previously in several companies such as JD.com, Spotify, Flipkart, Facebook and LinkedIn amongst others has now taken a more than $1 Billion stake in Japanese technology investor and telecom giant Softbank while terming the stock Softbank which is renowned for its $100 Billion technology investment “Vision Fund” as “meaningfully undervalued”.

Tiger Global estimates Softbank to be undervalued as its analysis pens Softbank’s total asset value at $278 Billion and a net asset value of $190 Billion which is over 2 times more than Softbank’s current market value of about $87 Billion.

Softbank’s stock rose 5.5% in reaction to this purchase which marks the highest it has popped in the space of three months along with this $1 Billion+ share purchase by Tiger Global which indicates a vote of confidence in Softbank’s founder and CEO Masayoshi Son as the company which counts major stakes in Alibaba, Yahoo Japan, U.S. telecom giant Sprint amongst several others looks to grow its stock value on the public markets.

Tiger Global currently manages around $22 Billion across its hedge fund and venture capital divisions and with a $1 Billion+ investment stands as a major buy for the hedge fund as it aims to capitalize on Softbank’s future growth.

This isn’t the first time Tiger and Softbank would cross paths on a deal yet, The hedge fund previously made a huge bet on Indian e-commerce firm Flipkart and sold part of its stake in the company reaping $3 Billion from both Softbank and Walmart after investing a total of $1 Billion in the Indian e-commerce company.

Softbank’s Vision Fund is widely known for its very large bets on several tech unicorns with the company notable for investing huge funds including a $4.4 Billion investment in Coworking startup WeWork, a $250 million investment in data storage startup Cohesity, a $1 Billion investment in sports e-tailer Fanatics, $535 million on food delivery startup DoorDash which came with a $1.4 Billion valuation for the company amongst several notable deals.

Softbank also recently made quite a large purchase of $2 Billion in Yahoo Japan stock which it purchased from Altaba notable for being a spin-off from Yahoo after the sale of its major business incorporated to manage it’s huge stakes in several businesses of which of which Alibaba and Yahoo Japan stakes known for having huge ties with Softbank makes a major part of.

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