Julian Robertson
Encyclopedia
Julian H. Robertson Jr., KNZM (Hon)
(born 1932) is an American former hedge fund
manager. Now retired, Robertson invests directly in other hedge funds, most run by former employees of Robertson's defunct hedge fund company.
He was born in Salisbury, North Carolina
in the United States. Robertson founded the investment firm Tiger Management Corp., one of the earliest hedge funds. Robertson is credited with turning $8 million in start-up capital in 1980 into over $22 billion in the late 1990s, though that was followed by a fast downward spiral of investor withdrawals that ended with the fund closing in 2000.
In 1993, his compensation and share of Tiger's gain exceeded $300 million. His 2003 estimated net worth was over $400 million, and in March 2011 it was estimated by Forbes
at $2.3 billion, a slight increase from the $2.2 billion estimated the previous year. Robertson said in 2008 that he shorted subprime securities and made money through credit default swaps. The following year, according to Forbes, Robertson's return on his $200-million personal trading account was 150 percent.
in 1951 and the University of North Carolina at Chapel Hill
in 1955. While at Chapel Hill, he was admitted to Zeta Psi
fraternity. He then served as an officer in the U.S. Navy until 1957.
After leaving the Navy, Robertson moved to New York City and worked for a time as a stockbroker for Kidder, Peabody & Co.
. At Kidder, he eventually headed up the firm's asset management division (Webster Securities) before departing to move with his family to New Zealand for a year to write a novel. On his return, in 1980 Robertson launched Tiger Management
with initial investments from friends and family.
carried a cover story written by reporter Gary Weiss
, called "Fall of the Wizard", that was critical of Robertson's performance and behavior as founder and manager of Tiger Management. Robertson subsequently sued Weiss and BusinessWeek for $1 billion for defamation. The suit was settled with no money changing hands and BusinessWeek standing by the substance of its reporting.
The Tiger funds reached a peak of $22 billion in assets in 1998. But a combination of poor stock picking and failure to exploit the technology stock craze caused Robertson's funds to suffer steep losses at the end of the decade, prompting investors to withdraw cash. When the Standard and Poor's 500-stock index climbed 21 percent in 1999, the Tiger funds declined 19 percent.
Robertson has been quoted as saying "our mandate is to find the 200 best companies in the world and invest in them, and find the 200 worst companies in the world and go short on them. If the 200 best don't do better than the 200 worst, you should probably be in another business."
Tiger's largest equity holding at that time was U.S. Airways, whose troubles dragged down the value of his holdings. Such missteps ultimately led him to close his investment company in March 2000 and return all outside capital to investors. Tiger earlier made $2bn in gains but then gave most of them back during a huge one-day move in the yen in 1998. In September 2001, Robertson distributed 24.8 million greatly devalued U.S. Airways shares to former Tiger investors. Robertson declared his intent to hold onto his own stock in the airline.
Today, Robertson is an active philanthropist and serves on a number of organization and university boards. He is the founder and benefactor of the Robertson Scholars Program
which awards a merit scholarship that provides four-year full-tuition, room and board, and travel funding for 36 Duke University
and University of North Carolina at Chapel Hill
students each year. In August 2010 it was announced that Robertson had joined an initiative by software mogul Bill Gates
and investor Warren Buffett
in which the wealthy would pledge a portion of their assets to charity.
He also is active as an investor and developer in New Zealand, where he spends some of his time. His family owns three lodges: Kauri Cliffs Lodge near Kerikeri
in Northland; Matakauri Lodge Queenstown
; and The Farm at Cape Kidnappers
, Hawkes Bay, as well as several wineries. Robertson was made an Honorary Knight Companion of the New Zealand Order of Merit
for services to business and philanthropy in the New Year Honours announced on 31 December 2009.
In May 2010 the New York Stem Cell Foundation
, a private research institution, announced that it had received a $27 million gift from Robertson and his wife Josie to fund its research. Josephine Tucker Robertson, wife of Julian Robertson, died 8 June 2010 after a long fight against breast cancer
.
New Zealand Order of Merit
The New Zealand Order of Merit is an order established in 1996 "for those persons who in any field of endeavour, have rendered meritorious service to the Crown and nation or who have become distinguished by their eminence, talents, contributions or other merits."The order includes five...
(born 1932) is an American former hedge fund
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
manager. Now retired, Robertson invests directly in other hedge funds, most run by former employees of Robertson's defunct hedge fund company.
He was born in Salisbury, North Carolina
Salisbury, North Carolina
Salisbury is a city in Rowan County in North Carolina, a state of the United States of America. The population was 33,663 in the 2010 Census . It is the county seat of Rowan County...
in the United States. Robertson founded the investment firm Tiger Management Corp., one of the earliest hedge funds. Robertson is credited with turning $8 million in start-up capital in 1980 into over $22 billion in the late 1990s, though that was followed by a fast downward spiral of investor withdrawals that ended with the fund closing in 2000.
In 1993, his compensation and share of Tiger's gain exceeded $300 million. His 2003 estimated net worth was over $400 million, and in March 2011 it was estimated by Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
at $2.3 billion, a slight increase from the $2.2 billion estimated the previous year. Robertson said in 2008 that he shorted subprime securities and made money through credit default swaps. The following year, according to Forbes, Robertson's return on his $200-million personal trading account was 150 percent.
Early life
Robertson is a native of North Carolina, the son of Julian Hart Robertson Sr., a textile company executive, and the former Blanche Spencer. He graduated from Episcopal High SchoolEpiscopal High School (Alexandria, Virginia)
Episcopal High School , founded in 1839, is a private boarding school located in Alexandria, Virginia. The Holy Hill's campus houses 435 students from 30 states, the District of Columbia and 17 different countries...
in 1951 and the University of North Carolina at Chapel Hill
University of North Carolina at Chapel Hill
The University of North Carolina at Chapel Hill is a public research university located in Chapel Hill, North Carolina, United States...
in 1955. While at Chapel Hill, he was admitted to Zeta Psi
Zeta Psi
The Zeta Psi Fraternity of North America was founded June 1, 1847 as a social college fraternity. The organization now comprises about fifty active chapters and twenty-five inactive chapters, encompassing roughly fifty thousand brothers, and is a founding member of the North-American...
fraternity. He then served as an officer in the U.S. Navy until 1957.
After leaving the Navy, Robertson moved to New York City and worked for a time as a stockbroker for Kidder, Peabody & Co.
Kidder, Peabody & Co.
Kidder, Peabody & Co. was a U.S.-based securities firm, established in Massachusetts in 1865. Its operations included investment banking, brokerage, and trading....
. At Kidder, he eventually headed up the firm's asset management division (Webster Securities) before departing to move with his family to New Zealand for a year to write a novel. On his return, in 1980 Robertson launched Tiger Management
Tiger Management
Tiger Management Corp., also known as "The Tiger Fund," was a hedge fund founded by Julian Robertson. The fund began investing in 1980 and was closed in March 2000.-History:...
with initial investments from friends and family.
Tiger funds
On April 1, 1996 BusinessWeekBusinessWeek
Bloomberg Businessweek, commonly and formerly known as BusinessWeek, is a weekly business magazine published by Bloomberg L.P. It is currently headquartered in New York City.- History :...
carried a cover story written by reporter Gary Weiss
Gary Weiss
Gary Weiss is an American investigative journalist, columnist and author of two books that critically examine the ethics and morality of Wall Street...
, called "Fall of the Wizard", that was critical of Robertson's performance and behavior as founder and manager of Tiger Management. Robertson subsequently sued Weiss and BusinessWeek for $1 billion for defamation. The suit was settled with no money changing hands and BusinessWeek standing by the substance of its reporting.
The Tiger funds reached a peak of $22 billion in assets in 1998. But a combination of poor stock picking and failure to exploit the technology stock craze caused Robertson's funds to suffer steep losses at the end of the decade, prompting investors to withdraw cash. When the Standard and Poor's 500-stock index climbed 21 percent in 1999, the Tiger funds declined 19 percent.
Robertson has been quoted as saying "our mandate is to find the 200 best companies in the world and invest in them, and find the 200 worst companies in the world and go short on them. If the 200 best don't do better than the 200 worst, you should probably be in another business."
Tiger's largest equity holding at that time was U.S. Airways, whose troubles dragged down the value of his holdings. Such missteps ultimately led him to close his investment company in March 2000 and return all outside capital to investors. Tiger earlier made $2bn in gains but then gave most of them back during a huge one-day move in the yen in 1998. In September 2001, Robertson distributed 24.8 million greatly devalued U.S. Airways shares to former Tiger investors. Robertson declared his intent to hold onto his own stock in the airline.
After Tiger
After closing his fund in 2000, Robertson kept his hand in the hedge fund business by supporting and financing upcoming hedge fund managers (38 in total as of September 2009), in return for a stake in their fund management companies. Apart from those, many of the analysts and managers Robertson employed and mentored at Tiger Management went out on their own and are now running some of the best-known hedge fund firms, called "Tiger Cubs".Today, Robertson is an active philanthropist and serves on a number of organization and university boards. He is the founder and benefactor of the Robertson Scholars Program
Robertson Scholars Program
The Robertson Scholars Program is a joint full-ride merit scholarship and leadership development program at Duke University and the University of North Carolina at Chapel Hill...
which awards a merit scholarship that provides four-year full-tuition, room and board, and travel funding for 36 Duke University
Duke University
Duke University is a private research university located in Durham, North Carolina, United States. Founded by Methodists and Quakers in the present day town of Trinity in 1838, the school moved to Durham in 1892. In 1924, tobacco industrialist James B...
and University of North Carolina at Chapel Hill
University of North Carolina at Chapel Hill
The University of North Carolina at Chapel Hill is a public research university located in Chapel Hill, North Carolina, United States...
students each year. In August 2010 it was announced that Robertson had joined an initiative by software mogul Bill Gates
Bill Gates
William Henry "Bill" Gates III is an American business magnate, investor, philanthropist, and author. Gates is the former CEO and current chairman of Microsoft, the software company he founded with Paul Allen...
and investor Warren Buffett
Warren Buffett
Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is widely regarded as one of the most successful investors in the world. Often introduced as "legendary investor, Warren Buffett", he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is...
in which the wealthy would pledge a portion of their assets to charity.
He also is active as an investor and developer in New Zealand, where he spends some of his time. His family owns three lodges: Kauri Cliffs Lodge near Kerikeri
Kerikeri
Kerikeri, the largest town in the Northland Region of New Zealand, is a popular tourist destination about three hours drive north of Auckland, and 80 km north of Whangarei...
in Northland; Matakauri Lodge Queenstown
Queenstown, New Zealand
Queenstown is a resort town in Otago in the south-west of New Zealand's South Island. It is built around an inlet called Queenstown Bay on Lake Wakatipu, a long thin Z-shaped lake formed by glacial processes, and has spectacular views of nearby mountains....
; and The Farm at Cape Kidnappers
Cape Kidnappers
Cape Kidnappers is a headland at the southeastern extremity of Hawke Bay on the east coast of New Zealand's North Island. It is located 20 kilometres southeast of the city of Napier...
, Hawkes Bay, as well as several wineries. Robertson was made an Honorary Knight Companion of the New Zealand Order of Merit
New Zealand Order of Merit
The New Zealand Order of Merit is an order established in 1996 "for those persons who in any field of endeavour, have rendered meritorious service to the Crown and nation or who have become distinguished by their eminence, talents, contributions or other merits."The order includes five...
for services to business and philanthropy in the New Year Honours announced on 31 December 2009.
In May 2010 the New York Stem Cell Foundation
New York Stem Cell Foundation
The New York Stem Cell Foundation is a nonprofit organization founded in the Spring of 2005. NYSCF is dedicated to accelerating cures for the major diseases of our time through stem cell research...
, a private research institution, announced that it had received a $27 million gift from Robertson and his wife Josie to fund its research. Josephine Tucker Robertson, wife of Julian Robertson, died 8 June 2010 after a long fight against breast cancer
Breast cancer
Breast cancer is cancer originating from breast tissue, most commonly from the inner lining of milk ducts or the lobules that supply the ducts with milk. Cancers originating from ducts are known as ductal carcinomas; those originating from lobules are known as lobular carcinomas...
.
Further reading
- The Greatest Investors - Julian Robertson
- Tiger Management Closes
- Sumitomo's Copper Trader's Arrangements -- CFTC (Investigation)
- Strachman, Daniel A. Julian Robertson: A Tiger in the land of Bulls and Bears. New York: Wiley, 2004
External links
- Tiger's Julian Robertson Roars Again — Fortune/CNN Money, 1/28/08
- The Ultimate Guide to Tiger Cubs and Tiger Seeds — Fundville, 3/30/10
- Video: Julian Robertson on Tiger Cubs and Tiger Seeds (hedge funds financed by him) and his estates in New Zealand — Opalesque FIVE Minutes, 11/19/09