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.