Wall Street: The original Tiger’s legacy

The latest in finance.
View in browser
INSIDER
Subscribe

10 THINGS ON WALL STREET

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.


If this was forwarded to you, sign up here. Download Insider's app here.


Julian Robertson square

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."

Insider's Alyson Velati took a look back at Robertson's legacy, and how the legendary investor stood at the center of a quarter-trillion-dollar web of hedge-fund spinoffs.

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:

Elon Musk handcuffed to Twitter logo 4x3

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.


Done deals:

  • 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.

Curated by Aaron Weinman in New York. Tips? Email aweinman@insider.com or tweet @aaronw11. Edited by Hallam Bullock (tweet @hallam_bullock) in London.

Download on the app store   Get it on google play

Key phrases

Older messages

I use Airbnb and Vrbo to rent out my $7,000-a-week beach home. Airbnb is hands down the better option if you want a seamless experience and to make more money.

Tuesday, August 23, 2022

Kelly Marohl thought Vrbo would be better for her property in Ocean City, Maryland, but Airbnb has helped her lock in four to six bookings per month. View in browser Business Insider Business Insider

Wall Street: Big Law’s Wild West

Tuesday, August 23, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Hi. I'm Aaron Weinman. We've written a bunch about the junior Wall Streeters who held so much of the

'I've been Conan O'Brien's assistant for 13 years'

Tuesday, August 23, 2022

Sona Movsesian was an NBC page and landed her assistant job through an internal... Read on Insider.com INSIDER INSIDER Subscribe INSIDER FEATURED ARTICLE ENTERTAINMENT I'm Conan O'Brien's

5 must-have employee benefits business owners should offer to ensure retention and well-being

Monday, August 22, 2022

While addressing external factors in an employee's life is vital, so is giving an individual the option to seek help for issues within the workplace View in browser Business Insider Business

Wall Street: A mind-boggling August

Monday, August 22, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Hi. I'm Aaron Weinman. It's been a strange month. Activity typically slows down on Wall Street in

The Daily StockTips Newsletter 10.04.2022

Tuesday, October 4, 2022

(Published 7:30 AM ET MON-FRI) ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Wall Street: Credit Suisse's turmoil

Tuesday, October 4, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Good morning! This is Lisa Ryan, reporting from New York. In case you missed the memo yesterday, Aaron Weinman

How The “Black Metropolis” Made A Comeback

Tuesday, October 4, 2022

Bronzeville was the epicenter of a Black renaissance before it fell on hard times. Now, it's booming again. Here's the story of its incredible turnaround. View this email online Planet Money

Darkest hours

Monday, October 3, 2022

Bloomberg Evening Briefing View in browser Bloomberg Credit Suisse shares briefly turned positive in a wild day of trading that saw them drop as much as 12%. With yet another restructuring looming,

🚙 Tesla takes a hit

Monday, October 3, 2022

Tesla delivered fewer cars than expected | Reports said OPEC+ might cut oil production | TOGETHER WITH Hi Reader, here's what you need to know for October 4th in 3:12 minutes. 📞 Listening to

One easy way to upgrade your financial wellness

Monday, October 3, 2022

Become an Ellevest client and start investing. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

I compared Walmart and Target, and found the two superstores are offering completely different types of convenience

Monday, October 3, 2022

Target is a home and clothing store that also stocks groceries. Walmart is a grocery store focused on stocking a huge range of products at low prices. View in browser Business Insider Business Insider

🚀 The deal with celebrity deepfakes

Monday, October 3, 2022

Plus, DALL-E is now open to everyone! ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Counterintuitive Economics of Hiring

Monday, October 3, 2022

Plus! Smartphones and Distributed Law Enforcement; Actors as IP; Microtransactions; Partnerships; Streaming; Diff Jobs ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Wall Street: M&A, lending plummet

Monday, October 3, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Hi. I'm Aaron Weinman. Today will be my final dispatch as the author of 10 Things on Wall Street. I'm