Julian Robertson

Julian Robertson Jr.
Julian Robertson Jr.
Born	25 June 1932 (age 94); Salisbury, North Carolina, U.S.
Died	23 August 2022 (aged 90); Manhattan, New York City, U.S.
Occupation(s)	Hedge fund manager, philanthropist
Known for	Founder of Tiger Management

Julian Hart Robertson Jr. (June 25, 1932 – August 23, 2022) was a prominent American figure in hedge fund management and philanthropy.

In 1980, Robertson established Tiger Management, one of the pioneering hedge funds. From its launch until its peak in 1998, the fund achieved an annualized return of 31.7% after fees, significantly surpassing the S&P 500's 12.7% over the same timeframe. Although Tiger experienced a steep downturn later on, it recorded losses in only four out of 21 years before shutting down in March 2000. Robertson played a crucial role in nurturing and financially backing numerous influential hedge fund managers—collectively known as the Tiger cubs—such as Ole Andreas Halvorsen, Stephen Mandel of Lone Pine Capital, Lee Ainslie from Maverick Capital, Bill Hwang, and Chase Coleman III.

Throughout his life, Robertson contributed over US$2 billion to various charitable causes and was among the signatories of The Giving Pledge. At the time of his passing, his estimated net worth stood at $4.8 billion.

Early life

Born on June 25, 1932, in Salisbury, North Carolina, Robertson was the son of Julian Hart Robertson Sr., who worked as a textile executive, and Blanche Spencer, a community activist. He is said to have lineage tracing back to Pocahontas. Showing an early fascination with the stock market from the age of six, he completed his education at Episcopal High School in 1951 and graduated from the University of North Carolina at Chapel Hill in 1955. During his time at Chapel Hill, he was a member of the Zeta Psi fraternity and participated in the Reserve Officers' Training Corps. Following college, he served as a U.S. Navy officer aboard a munitions vessel until 1957.

After his naval service, Robertson relocated to New York City where he began working as a stockbroker for Kidder, Peabody & Company. He eventually headed their asset management branch, Webster Securities. In 1978, he took a year-long family sabbatical to New Zealand to focus on writing a novel.

Investment career

With an initial capital of $8 million sourced from family, friends, and personal funds, Robertson launched Tiger Management in 1980. By 1998, Tiger’s assets under management reached a peak of $22 billion. Notably prescient about the impending dot-com bubble, Robertson deliberately reduced exposure to technology stocks. Tiger’s largest investment was in US Airways, where it held a 25% stake; difficulties faced by this company contributed to substantial losses for the fund, compounded by unfavorable movements in the Japanese Yen. These challenges ultimately led to Tiger Management’s closure in March 2000 at the height of the dot-com bubble, with all external investor capital returned. Additionally, internal pressure from employees advocating for increased technology investments influenced this decision.

In 2008, Robertson disclosed that he had taken short positions on subprime mortgage securities and utilized credit default swaps to generate a remarkable 76.7% return during 2007. Between closing Tiger Management and January 2008, his personal wealth expanded by 403%. Following the fund’s closure, he supported emerging hedge fund managers by providing capital in exchange for equity stakes in their firms.

Robertson also invested heavily in real estate development in New Zealand. He owned three luxury lodges: Kauri Cliffs Lodge near Matauri Bay in Northland; Matakauri Lodge located in Queenstown; and The Farm at Cape Kidnappers, situated in the Hawkes Bay, alongside ownership interests in several wineries.

Family

In 1972, Julian wed Josephine Tucker Robertson. She succumbed to breast cancer in June 2010. The couple had three children together.

Politics

Although a member of the Republican Party, Robertson was a proponent of clean energy initiatives, contributing $500,000 to the ClearPath Foundation in 2016. He backed Mitt Romney's 2012 presidential bid, hosting Romney during his own 80th birthday celebration and donating $1.25 million to the Restore Our Future Super PAC. In support of Jeb Bush’s 2016 campaign, Robertson gave $1 million to a related Super PAC in 2015. While he did not endorse Donald Trump in the 2016 election, instead supporting libertarian candidate Gary Johnson, Robertson later expressed support for Trump’s administration and the Tax Cuts and Jobs Act of 2017. Additionally, he donated $100,000 toward Trump’s 2020 campaign and favored reinstating the estate tax.

Residences

Robertson maintained homes in several locations including Manhattan’s Central Park South, Nassau County on Long Island, as well as properties in Sun Valley, Idaho, the Hamptons, and New Zealand. In 2020, he completed construction on three new residences in New Zealand for his family, each approximately 4,000 square feet.

He carefully documented the time he spent outside New York State and successfully defended himself in court by demonstrating that he was not liable for state income taxes.

Death

At the age of 90, Robertson passed away at his residence in Manhattan on August 23, 2022.

Legacy and awards

Robertson was inducted into Institutional Investors Alpha’s Hedge Fund Manager Hall of Fame in 2008. In recognition of his contributions to business and philanthropy, he was named an Honorary Knight Companion of the New Zealand Order of Merit during the 2010 New Year Honours. In 2017, he was honored with the Carnegie Medal of Philanthropy.

Legal issues

On April 1, 1996, BusinessWeek featured a cover story by journalist Gary Weiss titled "Fall of the Wizard," which critiqued Robertson’s leadership at Tiger Management. Robertson filed a $1 billion defamation lawsuit against Weiss and BusinessWeek. The case was ultimately settled without any monetary exchange, with BusinessWeek maintaining confidence in their reporting.

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