Tiger’s Robertson Bearish On Gold, Bonds, Bullish On Credit Cards, Galleon Arrests

Oct 23 2009 | 12:12pm ET

He doesn’t have much company among his peers, but hedge fund legend Julian Robertson is decidedly bearish on gold.

Many other hedge fund managers have made big bets on the precious metal this year, including John Paulson, Daniel Loeb and David Einhorn. But Robertson called the enthusiasm for gold “certifiably crazy” at the Value Investing Congress in New York this week.

The gold market does not reflect any supply or demand fundamentals, the Tiger Management founder said, and the metal is trading at the same price as 30 years ago. Instead, count Roberson as a plastic bull and a paper bear.

Robertson said credit card companies such as Visa and MasterCard have huge growth potential, and said that shorting bonds was a better inflation hedge than gold.

He also lauded what might be called the Galleon Group strategy, saying that two stocks that were allegedly the subject of insider trades by the hedge fund’s founder are good bets: Intel Corp. and Google. The former is cheap given “its intellectual superiority” while the latter “appears over the moon, but is still growing rapidly.”

He also touched directly on the Galleon case, saying h was “delighted” by the arrest of Raj Rajaratnam and five others in a $20 million alleged insider-trading circle.

“I think the crooks should be weeded out,” he told Reuters.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Strippers Accused Of Robbing Hedge-Fund Manager Face Jail

Oct 20 2014 | 9:20am ET

A group of alleged stripper-thieves—whose victims include a hedge-fund manager...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.