Two Reasons Why Julian Robertson Is Re-Starting His New Fund At The Worst Time

julian robertson tiger

Julian Robertson is reportedly about to re-open his fund, Tiger Fund Management, to external investors.

He’s doing it at the worst possible time for two reasons.

Robertson’s plans, according to the Wall Street Journal, are to create a fund of funds or a seed-fund investing firm, a move that makes sense after Robertson became known for his “Tiger Cubs,” funds that he invested in after their managers left Tiger. In return for seed capital, Robertson got a stake in the fund, a trade that he might try to replicate after the re-opening of his fund with his son, Alex.

But as Institutional Investor points out, the funds that Robertson has staked his seeder reputation on aren’t doing very well this year.

Witness the seven poorly performing Tiger Cubs:

Andreas Halvorsen’s Viking Capital (long-short equity fund) – down about 4.7% through June 30

Lee Ainslie’s Maverick Capital (long-short equity fund) – down 3.3% through July 2

Stephen Mandel’s Lone Cypress, (long-short fund) – down about 3.6% through July 2

Mandel’s Lone CascadeĀ  (long-only fund) – down about 4.6% through July 2

Steven Shapiro’s Intrepid Capital Management – down 4.5% through April (then he shut all but one down)

Shapiro’s Intrepid Enhanced – down 12% through May

James Lyle’s Millgate – down 10.3% in the first half of the year

AND, Ken Griffin’s Citadel is just now starting up a seeding fund in Dallas, Texas. So JR will have to compete with another huge hedge fund name.

But there is good news too. Five Tiger cubs are up by more than 5% this year.

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