Hi. I'm Aaron Weinman. Julian Robertson has died at the age of 90. The hedge-fund titan founded Tiger Management in 1980.
He turned about $8 million in start-up capital in the 1980s into more than $20 billion in assets under management throughout the 1990s.
Robertson's fund accurately predicted the dot-com bubble and underweighted the sector based on the belief that tech companies were overvalued due to a lack of cash flow. His fund still lost billions of dollars as a result of that bet, but it was Robertson's "I told you so" moment to many on Wall Street.
Another mea culpa might be Tiger's big bet on US Airways — it controlled about a quarter of the airline at one point. It got in on the company's stock for about $17 apiece, and while this peaked to $80, it then spiraled back into the $20 range.
In investing — like gravity — what goes up, inevitably comes crashing down. Robertson closed his firm in late 2000 and returned money to investors.
One of his greatest achievements, however, is arguably the impact Robertson had on other investors. His mentorship helped coin the term "Tiger Cubs," used to describe well-known investors like Chase Coleman and Philippe Laffont who cut their teeth under the Tiger Management founder.
Today, we are taking a look back at Robertson's legacy.
1. Julian Robertson, a pioneer in hedge funds and founder of Tiger Management, has died at 90 years of age. At its peak, Tiger Management managed about $21 billion in assets.
Since closing his fund in the year 2000, Robertson had been closely linked to some of the hedge-fund world's biggest names, many of whom he helped launch.
The Tiger Cubs — like Tiger Global founder Chase Coleman, Lee Ainslie who started Maverick Capital, and Philippe Laffont of Coatue fame — learned the ropes under Robertson and went on to found some of Wall Street's most successful hedge funds.
Coleman, in a statement to Insider, described Robertson as a "pioneer and a giant in our industry."
"He made the time to be a true mentor, always leading by example and pushing all of us to become the best versions of ourselves," Coleman said. "For that and for his friendship, I am forever grateful."
For more on the Tiger Cubs, check out this story from Alyson on how the funds dumped tech stocks and diversified their holdings.
In other news:
2. The Twitter whistleblower — former security chief Peiter Zatko — complaint is unlikely to be the silver bullet Elon Musk may hope for. But it could convince Twitter to let him pay to walk away from his $44 billion agreement to buy the social-media platform.
3. Short seller Carson Block's former research partner has ripped the US Securities and Exchange Commission's whistleblower team as "hopelessly incoherent." Here's why Kevin R. Barnes is mad.
4. MoneyLion's Chief Executive Dee Choubey said the company can become the go-to destination for personal finance. Shares of the company, which went public via a special purpose vehicle in September, have fallen 80%, and Choubey's ambitions might be a struggle.
5. Goldman Sachs' long-running gender bias lawsuit will head to trial in June next year. A US federal judge rejected the bank's bid to dismiss most of a 12-year-old class action alleging widespread bias against women in pay and promotions.
6. VMware is slowing down and vetoing customer deals as the $61 billion acquisition by Broadcom looms. Fearful customers are trying to lock in favorable terms with VMware before the deal closes, and some deals are getting canceled outright, a leaked memo seen by Insider showed.
7. Credit Suisse is chasing a broader set of the global wealthy, according to Bloomberg. The Swiss bank is shifting resources to pursue a broader range of rich clients. The development comes as Credit Suisse focuses on wealth management and dials back exposure to investment banking.
8. SoftBank's epic losses spotlight founder Masayoshi Son's broken business model. The bubble that the tech investor blamed for his company's $23 billion loss last quarter is one that he helped create, Bloomberg reported.
9. A PwC employee lost part of his skull after falling over during a drinking game at a work event. Michael Brockie is suing the financial-services company for more than $235,000. He is alleging that he faced "heavy pressure" to attend the work event.
10. Tensions have reached sky-high drama at East Hampton airport, per the Financial Times. Some Hamptons residents say the noise from private planes is intolerable, while supporters clamor for the dollars of deep-pocketed Manhattanites who vacation in the region every summer.
- Private-equity shop Alpine Investors has sold portfolio company Mindful to Medallia, a customer and employee experience company. Mindful provides automated callback services.
- Cloud developer DigitalOcean has agreed to buy Cloudways, a cloud-hosting software provider, for about $350 million in cash.