Tiger Management
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Tiger Management Corp., also known as "The Tiger Fund," was a hedge fund founded by Julian Robertson. "The modern-day emergence of hedge funds can be attributed to a 1986 article in Institutional Investor highlighting the extraordinary returns of the Tiger Fund. The article spurred investor interest and financing; since that time hedge funds have increasingly attracted investment and human capital."[1]
With $10.5 billion under management in 1997, it was the second largest hedge fund in the world at the time.[2] Its holdings climbed to $22 billion in 1998.
Tiger's largest equity holding at that time was U.S. Airways, whose troubles dragged down the value of his holdings. Such missteps ultimately led him to close his investment company in March 2000 and return all outside capital to investors. Tiger earlier made $2bn in gains but then gave most of them back during a huge one-day move in the yen in 1998. In September 2001, Robertson distributed 24.8 million greatly devalued U.S. Airways shares over to former investors in Tiger. Robertson declared his intent to keep the stock.[3] U.S. Airways declared bankruptcy in 2002, and shareholders in the airline were wiped out.[4]
After closing his Tiger Fund in 2000, Robertson started to use his own capital, experience and infrastructure to support and finance ("seed") upcoming hedge fund managers. As of September 2009, Robertson has helped launching 38 hedge funds ("Tiger Seeds") in return for a stake in their fund management companies. Apart from those Tiger Seeds, a considerable number of analysts and managers Robertson employed and mentored at Tiger Management went out on their own and are now running some of the best-known hedge fund firms, called “Tiger Cubs”. [5]
[edit] See also
[edit] References
- ^ Stephen M. Davidoff, Black Market Capital, 2008 Colum. Bus. L. Rev. 172 (2008) (citing Julie Rohrer, The Red-Hot World of Julian Robertson, Inst. Inv. 86-92 (May 1986)).
- ^ The Hedge Funds: The Rich Get a Little Richer — BusinessWeek
- ^ "INVESTING: DIARY; Left Holding the Bag On US Airways Stock," By Laurence Zuckerman, Sept.23,2001 http://www.nytimes.com/2001/09/23/business/investing-diary-left-holding-the-bag-on-us-airways-stock.html
- ^ "US Air files for bankruptcy: Airline gets OK for $75M in emergency financing; shareholders to be wiped out." CNN Money, Aug. 12, 2002 http://money.cnn.com/2002/08/11/news/companies/usair/
- ^ http://www.opalesque.com/tiger - list of 38 Tiger Seeds and 32 Tiger Cubs
[edit] External links
- Fortune Magazine article on founder Julian Robertson
- CNN Money archive — Tiger Management Closes
- BusinessWeek.com - Fall of the Wizard
- Video: Julian Robertson on Tiger Cubs and Tiger Seeds (hedge funds financed by him) and his estates in New Zealand — Opalesque FIVE Minutes, 11/19/09
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