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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...