Tiger Mgmt. founder, Julian Robertson chats with Bloomberg TV about the changing landscape of the hedge fund industry, the impact of the SEC's case against SAC Capital and Steve Cohen, and his thoughts on Apple and Google.
Last week, I tweeted a link back to our post, "Insights from Hedge Fund Legend, Julian Robertson" for his thoughts on the hedge fund industry and the changes that size and increased competition have brought. This latest Bloomberg interview is a worthwhile update to this discussion.
Here are the clips (part one: JR on hedge funds, part two: Julian on Apple, Google) and a few quotes below.
Julian Robertson on the Steve Cohen case and info flow to hedge funds: "I think hedge funds are generally extremely careful that they adhere to rules [concerning inside info]." Doesn't think it will impact the industry much. Tiger cub Nehal Chopra of Tiger Ratan Capital agrees.
On Steve Jobs and Apple: "I read the book on Steve Jobs and developed a tremendous amount of respect for his intellect, but I came to the conclusion that he really was a maverick person and really couldn't establish a great long-term entity [without his leadership]." Julian now prefers Google for their leadership structure long-term.
JR on hedge fund performance: "One of the things that has affected performance [since the growth of the industry from 1980s] is the increase in size of hedge funds. It was so much easier to compete with bank trust depts, individual investors and mutual funds than with other hedge funds... the competition is tougher.".
How Robertson selects his Tiger cubs: "That's sort of secret to us, but one aspect that got us interested in Nehal... was her competitiveness in tennis (Davis Cup caliber). She's a vicious competitor. I find that people who compete well in one thing compete well in others".
Twitter: Tom Keene asks Robertson, "are you on Twitter?". Robertson: "No, sir".
Related posts:
1. Insights from hedge fund legend, Julian Robertson.
2. Julian Robertson on hedge fund strategy and competition (Bloomberg).
Showing posts with label Steve Cohen. Show all posts
Showing posts with label Steve Cohen. Show all posts
Tuesday, July 23, 2013
Thursday, February 17, 2011
Steve Cohen on trading, global macro
If you caught our last post on Steve Cohen's ISI chat with Paul Tudor Jones (coverage courtesy of Dealbook), it's highly likely that you clicked through to read the details of Steven's interview.
Here's one item from that discussion that really grabbed my attention, Steve Cohen talking global macro:
"...Mr. Cohen, who said probably 25 percent of his investments were made outside the United States, has been emphasizing to his traders that global macro themes are more important than ever in investing.
For this reason he went to Davos, Switzerland, last month for the World Economic Forum and said that he found “the development of the next phase of the consumer economy in China is very intriguing.” He recognized that there “could be more situations like Egypt” and “you have something going on here that could be a tinderbox.”".
This piece of info really jumped out at me for a few reasons.
Firstly, as far as I know, Cohen has not been identified as a global macro trader in the past. SAC Capital seemed to grow from Cohen's roots in proprietary stock trading, with SAC's traders eventually taking on a larger role in fundamental analysis as time went on.
The fact that such a prominent, fundamental and technical-driven US stock trader is now stressing the importance of global macro themes and their influence on markets is quite noteworthy.
His recent comments to PTJ on the firm's growing exposure to international investments were also touched on in an earlier, 2008 interview with AR:
"...How much does SAC invest outside the U.S.?
[SC] Probably 15 to 20 percent of our activity is outside the U.S. There’s a lot of opportunity for growth in both Europe and Asia. The game is changing. Stock markets are starting to develop all over the world, and that creates opportunity...."
This brings to mind two separate interviews, with Passport Capital's John Burbank and California investor Michael Burry, that we shared last fall in our global macro post series. Both stressed the importance of international investing and the profound influence that global macro themes now have over US markets.
The observations made by Burry and Burbank were soon echoed by well-known hedge fund manager, David Einhorn, who noted the shift that had occurred in his investing style due to the impact of big picture, macro trends.
These interviews are a rare glimpse into the thinking of some of our most astute investors, and are all must hear/must read material. Hoping you will be informed by, and profit from, them.
Related articles and posts:
1. Must hear interview with John Burbank - Finance Trends.
2. Michael Burry: an up & coming macro star? - Finance Trends.
3. Macro themes dominate investing world - Finance Trends.
Here's one item from that discussion that really grabbed my attention, Steve Cohen talking global macro:
"...Mr. Cohen, who said probably 25 percent of his investments were made outside the United States, has been emphasizing to his traders that global macro themes are more important than ever in investing.
For this reason he went to Davos, Switzerland, last month for the World Economic Forum and said that he found “the development of the next phase of the consumer economy in China is very intriguing.” He recognized that there “could be more situations like Egypt” and “you have something going on here that could be a tinderbox.”".
This piece of info really jumped out at me for a few reasons.
Firstly, as far as I know, Cohen has not been identified as a global macro trader in the past. SAC Capital seemed to grow from Cohen's roots in proprietary stock trading, with SAC's traders eventually taking on a larger role in fundamental analysis as time went on.
The fact that such a prominent, fundamental and technical-driven US stock trader is now stressing the importance of global macro themes and their influence on markets is quite noteworthy.
His recent comments to PTJ on the firm's growing exposure to international investments were also touched on in an earlier, 2008 interview with AR:
"...How much does SAC invest outside the U.S.?
[SC] Probably 15 to 20 percent of our activity is outside the U.S. There’s a lot of opportunity for growth in both Europe and Asia. The game is changing. Stock markets are starting to develop all over the world, and that creates opportunity...."
This brings to mind two separate interviews, with Passport Capital's John Burbank and California investor Michael Burry, that we shared last fall in our global macro post series. Both stressed the importance of international investing and the profound influence that global macro themes now have over US markets.
The observations made by Burry and Burbank were soon echoed by well-known hedge fund manager, David Einhorn, who noted the shift that had occurred in his investing style due to the impact of big picture, macro trends.
These interviews are a rare glimpse into the thinking of some of our most astute investors, and are all must hear/must read material. Hoping you will be informed by, and profit from, them.
Related articles and posts:
1. Must hear interview with John Burbank - Finance Trends.
2. Michael Burry: an up & coming macro star? - Finance Trends.
3. Macro themes dominate investing world - Finance Trends.
Tuesday, February 15, 2011
SAC's Steve Cohen opens up to Paul Tudor Jones
SAC Capital chief, Steve Cohen opens up to fellow hedge fund legend Paul Tudor Jones in an ISI conference chat that was closed to the media, but reported on by Dealbook.
Here's the 411 from Dealbook:
"The founder of SAC Capital Advisers, the $12 billion hedge fund in Stamford, Conn., sat for a rare wide-ranging interview with Paul Tudor Jones, another hedge fund manager, where he discussed his favorite stocks and a whole lot more. The interview was part of a two-day conference at the Waldorf Astoria hotel in Midtown Manhattan sponsored by ISI, the Wall Street research firm...
Other than complaining about his bad back, Mr. Cohen is said to have appeared at ease during the hourlong conversation before a packed crowd. Mr. Jones, who joked that he was playing the role of Charlie Rose, pressed Mr. Cohen on a variety of topics but did not — no surprise — ask questions about the government’s insider trading charges against two of his former traders.
Mr. Cohen talked about how he got started as a trader, reading the stock tables in the daily newspaper as a child and hanging around the local brokerage firm near his house in Great Neck, N.Y. There “was something in my blood, something that I loved” about trading that has stayed with him... ".
This discussion must have been something to witness in the room. I'm just glad Dealbook has provided notes on this little chat between two modern-day trading legends. Check this one out, gang.
Related articles and posts:
1. Bloomberg profiles SAC's Steve Cohen - Finance Trends.
2. Paul Tudor Jones on trading macro - Finance Trends.
Here's the 411 from Dealbook:
"The founder of SAC Capital Advisers, the $12 billion hedge fund in Stamford, Conn., sat for a rare wide-ranging interview with Paul Tudor Jones, another hedge fund manager, where he discussed his favorite stocks and a whole lot more. The interview was part of a two-day conference at the Waldorf Astoria hotel in Midtown Manhattan sponsored by ISI, the Wall Street research firm...
Other than complaining about his bad back, Mr. Cohen is said to have appeared at ease during the hourlong conversation before a packed crowd. Mr. Jones, who joked that he was playing the role of Charlie Rose, pressed Mr. Cohen on a variety of topics but did not — no surprise — ask questions about the government’s insider trading charges against two of his former traders.
Mr. Cohen talked about how he got started as a trader, reading the stock tables in the daily newspaper as a child and hanging around the local brokerage firm near his house in Great Neck, N.Y. There “was something in my blood, something that I loved” about trading that has stayed with him... ".
This discussion must have been something to witness in the room. I'm just glad Dealbook has provided notes on this little chat between two modern-day trading legends. Check this one out, gang.
Related articles and posts:
1. Bloomberg profiles SAC's Steve Cohen - Finance Trends.
2. Paul Tudor Jones on trading macro - Finance Trends.
Saturday, March 6, 2010
Bloomberg profiles SAC's Steve Cohen
Bloomberg has published a lengthy profile of trader and SAC Capital founder, Steve Cohen. If you're not already familiar with the now-legendary hedge fund manager, you will be by the time you finish reading it.
Here's an excerpt from, "Steve Cohen's Trade Secrets".
1. BusinessWeek profiles Steve Cohen (2003) - BW Online.
2. Steve Cohen interview w/ Jack Schwager (preview) - Google Books.
Here's an excerpt from, "Steve Cohen's Trade Secrets".
"...Though Cohen attends more golf and other outings than he once did, most days the balding, blue-eyed, stocky investment manager does what he knows best: He trades. He has a perch in the middle of the Stamford floor, and his bets account for about 10 percent of profits -- down from more than 50 percent 10 years ago.
He doesn’t like noise, so the phones on the floor don’t ring; they light up. He prefers jeans and sweaters to suits and looks more like a tax accountant on casual Friday than a trading titan running a $12 billion hedge fund firm.
Near the trading floor hang pieces from Cohen’s extensive art collection, which includes works by Vincent Van Gogh, Pablo Picasso and Andy Warhol.
Cohen maintains the temperature on the trading floor at 69 degrees Fahrenheit (21 degrees Celsius) to make sure no one dozes. If a portfolio manager or analyst can’t answer a question about a stock, Cohen is likely to lash out. “Do you even know how to do this f---ing job?” is a standard barb, current and former employees say.
Portfolio managers make money, or they’re fired. They usually last about four years..."
Aside from this overview, I found the first half of the article to be largely weighted towards scandal (or hints of) and an account of how SAC weathered the rough seas of 2006-2008. I have to say that I was interested in hearing more about Cohen's background and his methods of stock trading, which the latter part of the article tries to address (a difficult task as Cohen would not comment for this piece).
If you want to get a fuller, more personal view (though possibly dated) of Cohen's trading style, check out his interview in Schwager's Stock Market Wizards and check out the related article links below.
1. BusinessWeek profiles Steve Cohen (2003) - BW Online.
2. Steve Cohen interview w/ Jack Schwager (preview) - Google Books.
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