Julian Robertson is a now-retired hedge fund legend. He stopped managing money for his clients more than 10 years ago, but he is still widely followed in the media and his comments attract a lot of attention. His stellar track record is to credit. Julian Robertson returned 31.7% per year after fees between 1980 and 1998, beating S&P 500’s 12.7% annual return by a huge margin. He performed terribly in 1999 and 2000 and his overall return went down to 26%.
Tiger Management’s Julian Robertson made a rare yearly media appearance recently on Bloomberg’s ‘Bloomberg Surveillance’ program. There, he talked about what the most important things are that he looks for in a stock:
- Good management: This was the first thing he mentioned and is something you’ll see strongly emphasized at most of the Tiger Cub hedge funds these days.
- Good product line: This one is kind of obvious as you need to sell a product/service that people/companies need or desire.
- Shareholder orientation: This kind of ties back-in with #1, but he wants a company that’s very stockholder friendly (presumably returning capital to shareholders, etc).