Julian Robertson (Trades, Portfolio), who not only pioneered the hedge fund industry but also helped launch some of the industry’s leading funds through his protégé program, established 20 new positions in the third quarter, focused on exchange-traded funds.
Robertson summarized his investing approach in a 2012 interview with Columbia Business School’s Graham & Doddsville:
"I believe that the best way to manage money is to go long and short stocks. My theory is that if the 50 best stocks you can come up with don't outperform the 50 worst stocks you can come up with, you should be in another business ... For my shorts, I look for a bad management team, and a wildly overvalued company in an industry that is declining or misunderstood."
The investor’s legendary firm, Tiger Management, once boasted some of the highest returns on Wall Street. Although it closed to outside investors in 2000, it continues to invest. Its long portfolio is valued around $997 million with 73 positions.
About half of stocks are from the financial services industry and 20.4% come from the tech sector. Call options on Citigroup Inc. (C, Financial), Bank of America Inc. (BAC, Financial) and JPMorgan Chase & Co. (JPM, Financial) make up its largest holdings.
In the third quarter, however, Robertson’s firm took an interest in ETFs representing non-U.S. economies. The five largest new positions he took were: PagSeguro Digital Ltd. (PAGS, Financial), iShares MSCI Emerging Index Fund (EEM, Financial), PowerShares QQQ Trust Ser 1 (QQQ, Financial), iShares MSCI Japan Index Fund (EWJ, Financial) and iShares China Large-Cap (FXI, Financial).
New buys
PagSeguro Digital Ltd. (PAGS, Financial)
Tiger Management purchased 388,600 shares of PagSeguro Digital Ltd., giving it 1.08% portfolio weight. Its third-quarter share price averaged $27.
PagSeguro Digital Ltd. has a market cap of $7.01 billion; its shares were traded around $21.45 Tuesday with a price-earnings ratio of 28.67 and price-sales ratio of 9.62.
iShares MSCI Emerging Index Fund (EEM, Financial)
Tiger Management purchased 105,900 shares of iShares MSCI Emerging Index Fund, giving it 0.46% portfolio weight. The ETF’s third-quarter share price averaged $43.
iShares MSCI Emerging Index Fund has a market cap of $29.36 billion; its shares were traded around $39.76 Tuesday with a price-earnings ratio of 11.79. The trailing 12-month dividend yield of iShares MSCI Emerging Index Fund stocks is 1.98%.
PowerShares QQQ Trust Ser 1 (QQQ, Financial)
Tiger Management purchased 22,200 shares of PowerShares QQQ Trust Ser 1, giving it 41% portfolio weight. The ETF’s third-quarter share price averaged $181.
PowerShares QQQ Trust Ser 1 has a market cap of $64.73 billion; its shares were traded around $163.61 Tuesday with a price-earnings ratio of 23.69. The trailing 12-month dividend yield of PowerShares QQQ Trust Ser 1 stocks is 0.81%.
iShares MSCI Japan Index Fund (EWJ, Financial)
Tiger Management purchased 50,100 shares of iShares MSCI Japan Index Fund, giving it 0.02% portfolio weight. The ETF’s third-quarter price averaged $58.
iShares MSCI Japan Index Fund has a market cap of $15.86 billion; its shares were traded around $53.09 Tuesday with a price-earnings ratio of 12.49. The trailing 12-month dividend yield of iShares MSCI Japan Index Fund stocks is 1.53%.
iShares China Large-Cap (FXI, Financial)
Tiger Management purchased 70,500 shares of iShares China Large-Cap, giving it 0.05% portfolio weight. The ETF’s third-quarter share price averaged $42.
iShares China Large-Cap has a market cap of $5.78 billion; its shares were traded around $40.67 Tuesday with a price-earnings ratio of 8.84. The trailing 12-month dividend yield of iShares China Large-Cap is 2.74%.
See Julian Robertson (Trades, Portfolio)’s portfolio here.
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