Tiger Management

Julian Robertson, a stockbroker and former United States Navy officer, started Tiger Management in 1980 with $8 million in capital. By 1996, the fund’s assets had increased to $7.2 billion in value.{{cite web

| last = Weiss

| first = Gary

| date = April 1, 1996

| url = http://www.businessweek.com/1996/14/b34691.htm

| archive-url = https://archive.today/20130118141712/http://www.businessweek.com/1996/14/b34691.htm

| url-status = dead

| archive-date = 2013-01-18

| title = Fall of the Wizard. Part 1

| format = Magazine article

| work = Business Week

| publisher =McGraw-Hill

| access-date = November 11, 2009

}}

and

{{cite web

| url = http://www.businessweek.com/1996/14/b34692.htm

| archive-url = https://archive.today/20130102122105/http://www.businessweek.com/1996/14/b34692.htm

| url-status = dead

| archive-date = 2013-01-02

| title = part 2

}} On April 1, 1996 BusinessWeek carried a cover story written by reporter Gary Weiss, called "Fall of the Wizard", that was critical of Robertson's performance and behavior as founder and manager of Tiger Management. Robertson subsequently sued Weiss and BusinessWeek for $1 billion for defamation. The suit was settled with no money changing hands and BusinessWeek standing by the substance of its reporting.

{{cite news |title= Digital, corner newsstands go head-to-head: Question of timing in magazine publishing goes to court |work= The Fresno Bee |last= Associated Press |author-link= Associated Press |page= D14 |date=November 4, 1997}}

{{cite news |url=https://www.questia.com/read/1G1-19460270 |title= Steep libel claims raise concerns |work= Folio: The Magazine for Magazine Management |first=Jeff |last= Garigliano |publisher= Cowles Business Media Inc. |page= 19 |date=June 1, 1997}}

{{cite news |title= Money Aside, Manager Settles Suit |work= New York Daily News |first= Keith J. |last= Kelly |page= 78 |date=December 18, 1997}}

{{cite news |title= Corrections |last= New York Times |author-link= New York Times |date= January 7, 1997}}

{{cite news |title= Investor files papers signaling intent to sue Business Week for $1 billion |work= Wall Street Journal |first= Patrick M. |last= Reilly |publisher= Dow Jones |date=April 4, 1997}}

{{cite news |title= Business Week Agrees to Settle Libel Suit Brought by Investor |last= Wall Street Journal |author-link= Wall Street Journal |publisher= (Dow Jones) |date=December 18, 1997}}

{{cite news

| last = Pogrebin

| first = Robin

| date = November 3, 1997

| url = https://www.nytimes.com/1997/11/03/business/publication-date-open-to-dispute-in-internet-age.html?scp=1&sq=Publication%20Date%20Open%20to%20Dispute%20In%20Internet%20Age&st=cse

| title = Publication Date Open to Dispute In Internet Age

| format = Newspaper article

| work = New York Times

| access-date = November 11, 2009

}}

{{cite news

| last = Truell

| first = Peter

| date = December 18, 1997

| url = https://www.nytimes.com/1997/12/18/business/the-media-business-investor-settles-libel-suit-against-business-week.html?scp=1&sq=Investor%20Settles%20Libel%20Suit%20Against%20Business%20Week&st=cse

| title = The Media Business; Investor Settles Libel Suit Against Business Week

| format = Newspaper article

| work = New York Times

| access-date = November 11, 2010

}}

With $10.5 billion of assets under management in 1997, it was the second largest hedge fund in the world at the time.{{cite news |url=http://www.businessweek.com/1997/34/b3541191.htm |archive-url=https://web.archive.org/web/19990225072225/http://www.businessweek.com/1997/34/b3541191.htm |url-status=dead |archive-date=February 25, 1999 |title=The Hedge Funds: The Rich Get a Little Richer |work= BusinessWeek |date= August 25, 1997 |access-date= August 29, 2013 }} Its holdings climbed to $22 billion in 1998.{{Cite news| url = https://www.bloomberg.com/news/2014-06-03/robertson-s-stock-picker-singh-said-to-become-newest-tiger-cub.html|title= Robertson's Stock Picker Singh Said to Become Newest Tiger Cub |author= Kelly Bit |publisher=Bloomberg News |date = June 3, 2014}} However, in the late 1990s, Tiger Management faced challenges. The fund incurred significant losses during the 1998 Russian financial crisis and Long-Term Capital Management crisis and struggled to recover. Additionally, Robertson expressed concerns about the increasing market volatility and what he viewed as an irrational exuberance in technology stocks during the dot-com bubble.{{Cite web |last=TigerGreatGrandcub |date=2023-07-07 |title=Hedge Funds 101: History and Strategies of Tiger Cubs |url=https://www.buysideinsiders.com/post/hedge-funds-101-history-and-strategies-of-tiger-cubs |access-date=2023-09-02 |website=BuysideInsiders |language=en}}

Tiger's largest equity holding at that time was U.S. Airways, whose financial troubles dragged down the value of the fund's holdings. Such missteps ultimately led him to close his investment company in March 2000 and return all outside capital to investors. Tiger earlier made $2 billion in gains, but 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.{{cite news |title=INVESTING: DIARY; Left Holding the Bag On US Airways Stock |author= Laurence Zuckerman |work= The New York Times |date=September 23, 2001 |url=https://www.nytimes.com/2001/09/23/business/investing-diary-left-holding-the-bag-on-us-airways-stock.html }} U.S. Airways declared Chapter 11 bankruptcy in 2002, and shareholders in the airline were wiped out.{{cite news |title=US Air files for bankruptcy: Airline gets OK for $75M in emergency financing; shareholders to be wiped out |publisher=CNN Money |date=August 12, 2002 |url=https://money.cnn.com/2002/08/11/news/companies/usair/}}

{{Main|List of Tiger Cubs (finance)}}

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 had helped launch 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",{{cite web|url=http://www.opalesque.com/tiger |title=list of 38 Tiger Seeds and 32 Tiger Cubs |publisher=Opalesque |access-date=2011-12-21}} run by Tiger alumni such as Ole Andreas Halvorsen, Chris Shumway, Lee Ainslie, Stephen Mandel, John Griffin, Philippe Laffont, Dan Morehead, David Gerstenhaber,{{cite web |url=http://www.opalesque.tv/youtube/David_Gerstenhaber/1 |title=Tiger Cub David Gerstenhaber: The economist whose passion for markets began at age 14 |publisher=Opalesque TV |date=Nov 25, 2010 |access-date=2012-05-11}} David Goel,{{cite web|last=Taub|first=Stephen|title=Are the Tigers losing their stripes? |date=1 Nov 2010 |url=http://www.institutionalinvestor.com/Popups/PrintArticle.aspx?ArticleID=2700880|publisher=Institutional Investor|access-date=2013-04-25 |url-status=dead |archive-url= https://web.archive.org/web/20131116005135/http://www.institutionalinvestor.com/Popups/PrintArticle.aspx?ArticleID=2700880 |archive-date= Nov 16, 2013 }} Chase Coleman, Martin Hughes, Bill Hwang and Paul Touradji.

"The modern-day emergence of hedge funds can be attributed to a 1986 article in the 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."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 Wall Street Journal reported in June 2010 that Robertson was considering reopening his firm to outside investors. John Townsend, a former partner at Goldman Sachs, was hired as the chief operating officer, and Robertson's son Alex joined the firm. The new hires were part of a potential expansion that could involve creating a "seeding" fund or a fund of hedge funds for outside investors.{{cite journal |title=Tiger Sowing Seeds of Growth: Julian Robertson Weighs Reopening Firm to Outsiders a Decade After He Shut Fund |journal=Wall Street Journal |date= July 21, 2010 |url= https://www.wsj.com/articles/SB10001424052748704723604575379563253539910?KEYWORDS=tiger+management }} According to Institutional Investor magazine, that year many of the Tiger-seeded funds were struggling.{{cite web |title=Tough Year for Tiger Cubs |publisher=Institutional Investor |date= July–August 2010 |url=http://www.institutionalinvestor.com/alternatives/Articles/2635443/Tough-Year-for-Tiger-Cubs.html?p=1}}

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{{Hedge funds}}

Category:Tiger Management

Category:Investment management companies of the United States

Category:Hedge fund firms in New York City

Category:2000 disestablishments in New York (state)

Category:Defunct hedge funds

Category:Privately held companies based in New York City

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Category:American companies established in 1980

Category:Financial services companies disestablished in 2000

Category:Financial services companies established in 1980