Robertson announced that the remaining assets of more than $6 billion under Tiger Management will be gradually returned to the company's shareholders before May 1, 2000, based on 75% cash and 5% held by funds in 11 stocks.
The Tiger Fund founded by Robertson had an extremely brilliant record. In 1980, it received US$8 million. By the peak in 1998, this number became US$20 billion. During this period, the return on investment of the initial investors of Tiger Fund exceeded 85 times, and the annual return rate of 25% easily exceeds the S&P 500 index. As long as it can obtain a return of 18% in the next two years, it can create a 100-fold fund in 20 years. However, all of this was shorting Hong Kong in 1998. Financial markets came to an abrupt halt.
In just one and a half years, everything Tiger Fund invested in fell. Only the Internet technology companies they firmly shorted saw their stock prices continue to soar. Robertson, who did not mind being called an "old economy investor", reluctantly persisted. : The key to Tiger's success over the years has been an unwavering commitment to buying the best stocks and shorting the worst.
In a rational environment, this strategy works well, but in an irrational market, where return and price considerations give way to flow and trend, as we can see, this logic becomes less important, but the problem However, in the face of tiger-style value investment, holders have lost their last patience.
Beginning in August 1998, investors withdrew their funds from Tiger Fund in waves. By the time Robertson closed Tiger Fund himself, the company's assets under management had dropped from US$20 billion to US$6.5 billion.
Sun Jian also saw the news from the Internet immediately. The news was also confirmed by the daily Dow Jones and Nasdaq stock investment analysis reports sent by Zhao Guohua that night. He was not surprised at all. What happened in the previous life, the waves behind the Yangtze River pushed the waves in front, and the waves in front died on the beach!
Julian Robertson colluded with George Soros of Quantum Fund and John Meriwether of Ltd. Relying on the absolute advantages of funds and information, he took advantage of loopholes in the financial market rules of other countries and regions, used the media, spread rumors, and bought and sold short. They succeeded in shorting the British pound and the Southeast Asian market. If it weren't for the strong protection of the United States behind them, the three old guys would have been caught and imprisoned, and their skin would have peeled off even if they didn't die!
The three of them conspired to short the financial market in Xiangjiang and were unfriendly to China. As a reborn person, he kept a low profile and would not offend others unless others offend him. Sun Jian would neither associate with the three nor be so boring that he would become his enemy.
The three men are known as international investment masters. They wielded influence in the Wall Street financial market and jointly harvested the wealth accumulated in Southeast Asian countries and regions for decades. This caused the economies of Thailand and Malaysia to regress for more than ten years, political turmoil in India, and Suhto's arrest. Forced to step down and called an enemy by Southeast Asians, Soros was cursed by Mathilde as a devil!
Whoever doesn't let them cut leeks is their enemy!
It failed miserably in the Hong Kong and Russian financial markets. If the Federal Reserve had not come to the rescue, Ltdm's bankruptcy and liquidation would have caused violent turmoil in the Wall Street financial market, and Meriwether might have been imprisoned!
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【My 1985】【】
John Merriweather was the first to fall from the altar.
Today, Julian Robertson became the second unlucky guy!
According to Sun Jian’s memory, the Quantum Fund is not far away from being liquidated!
George Soros will also fall from the altar!
In a letter to fund holders, Robertson attributed the main reason for closing Tiger Fund to irrational redemptions by fund holders.
Sun Jian believes that the main reason for the closure of Tiger Fund was that Robertson was self-righteous and self-righteous. It was normal to increase leverage by 20 or 30 times every time he invested. He suffered disastrous defeats in the Russian market and the Hong Kong financial market and failed to learn his lesson. He invested in Nas Daq Network technology stocks suffered another disastrous defeat, causing Tiger Fund to suffer huge losses. Fund holders redeemed one after another and voted with their feet!
When investing in stocks, Robertson has always adhered to the concept of "value investing", determining reasonable prices based on the company's profitability, buying at low prices, and shipping at high prices. However, when the financial market entered 1999, a whirlwind of Internet technology stocks blew up. The crazy rise of "new economy" stocks does not completely operate according to the basic analysis model. The value investment method is ineffective in the investment analysis of network technology stocks.
Robertson bought a large number of "old economy" shares at low prices, and these shares continued to plummet due to the inflow of market funds into "new economy" stocks. American Airlines, in which Tiger Fund held a 22% stake, plummeted nearly 10% in the past 12 months. 50%, Tiger Fund suffered heavy losses. Tiger Fund's assets per share fell from a peak of US$1.54 million to US$820,000 at the end of February, a drop of 47%.
Since August 1998, Tiger Fund has performed poorly in the market. Fund holders have voted with their feet, with redemptions amounting to US$7.7 billion.
As a hedge fund, Tiger Management uses leverage to short-buy promising stocks and short-sell unfavorable stocks. For unprofitable Internet technology stocks, it is natural for Robertson to short these shares. In the early days of the craziness of Internet technology stocks, Robertson sold them aggressively. Short on Lucent and Micron Technology, two popular network technology stocks, they lost 19%!
In the later stages of the craziness of Internet technology stocks, Tiger Management did not stick to its prediction of the bursting of the bubble in Internet technology stocks due to the situation. Internet technology stocks such as Dell, Dell and Microsoft took over the market at high levels, and the Nasdaq index plummeted 35% in less than a month. , Robertson took another hard hit in Internet technology stocks!
Since September 1998, the value of assets managed by Tiger Fund has plummeted by US$16 billion. Due to serious losses, the assets managed by Tiger Fund can no longer provide sufficient commissions and profit sharing to cover the expenses of operating Tiger Fund and employee compensation.
At the end of the rope, Robertson had no choice but to announce the liquidation of Tiger Fund.
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Monday, April 1st.
"Xiao Li, Xiao Min, and Mr. Sun instructed us to buy $1 billion of Berkshire Hathaway stock at the closing price on Friday."
At 8:30 in the morning, Zhao Guohua, the director of the stock investment department, came to the AtIc Institutional Investment Room and assigned tasks to traders Li Shaoming and Min Jianjun with a smile on his face.
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【My 1985】【】
This is one of the blue chip stocks that have fallen sharply recommended by Zhao Guohua at Sun Jian's request, Berkshire. Hathaway's stock price dropped from about US$1 per share in mid-1998 to US$1 on March 10 this year, and the stock price was almost cut in half!
"OK!"
"OK!"
Li Shaoming and Min Jianjun, who were bored, were also studying traditional blue-chip stocks in the Dow Jones market during this time. Berkshire. Hathaway is also one of the blue-chip stocks they recommended to Minister Zhang. It is also their credit for being favored by Mr. Sun.
