Julian Robertson: Hedge Fund Managers Are “Scared”….

Via Bloomberg TV:

Julian Robertson, founder of Tiger Management, appeared on “Bloomberg Surveillance” with Tom Keene and Sara Eisen this morning, saying that hedge funds that have positioned themselves for a “black swan event” are making a “mistake.”

Robertson said, “I think right now they are all scared…They are really only going to be profitable in the event of a big disaster.”

Robertson on why hedge funds have had such a challenge in 2012:

“They are having a challenge because a lot of people in the hedge fund business have become so disenchanted with the economies of the world. Europe is a mess and we see the fiscal problems of the United States. Hedge funds -there are a lot of them that really are disaster funds now. In other words, they are really only going to be profitable in the event of a big disaster.”

On hedge funds that are underperforming:

“I think right now they are really scared. They have made a mistake. They are now unhedged because they are so scared. They really will succeed only if we have rather disastrous period…We have to assume that a black swan event is very unlikely…They have gotten so bearish that some of them that that is what has happened. They will not get out of it without a black swan type event.”

“This is still the best place to run money. One reason the hedge funds are not doing as well as they used to is the competition is more hedge funds. And that the competition is so much better than any other form of competition.”

On his support for Romney:

“I think people are getting to know the real Mitt Romney. I am thrilled that that is happening. He is really quite a guy. He is, in my opinion, intellectually and morally and managerially the man that is most qualified by far to be president of the United States. You’re having a guy this afternoon that is a great hero of mine, but Mitt Romney is even better than Ken Langone.”

On whether Romney has to move away from the Tea Party in order to govern effectively:

“I think he will have to move away a little bit from the tea party. But I do not think he has ever been thought of as a tea drinker. He has been a little bit separate from that movement.”

On how the economy would react to Romney if elected:

“I think the campaign is going good. I think Governor Romney is really getting the American people to see the real Romney. That is what we have needed all along. I wish his family would expose itself more…I’d like to see Mrs. Romney, I would like to see the boys out and all of that more.”

On what he’d want to see from Romney in his first month if elected:

“t would like to see him be himself and be the manager he can be. I would like to see him reach across the aisle to get things done. I think he will do that. His health care bill, which a lot of Republicans despised, to me was essential. I think America needs a health care bill. I do not think it needs Obamacare, but I think it desperately needs a health-care bill. I really look forward to him putting that through.”

On what economic policy the U.S. needs right now:

“I think America needs a policy on the economy of getting its house in order. It has overspent, overspent, and overspent. And it must get its budget balanced. There must be some strides taken in that direction. The president–this is the tragedy of an inexperienced person being in. he came up with the best idea of all in Bowles-Simpson and if he had done Bowles-Simpson, I think he would be sweeping into office now.”

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  • percolator

    Julian Robertson said “He is, in my opinion, intellectually and morally and managerially the man that is most qualified by far to be president of the United States.”

    Jesus what FN bullsh!t For the truth about Romney once again Matt Taibbi is the only telling it http://www.rollingstone.com/politics/news/greed-and-debt-the-true-story-of-mitt-romney-and-bain-capital-20120829

    And more BS by the Tiger Management Liar in Chief “I think America needs a health care bill. I do not think it needs Obamacare, but I think it desperately needs a health-care bill. I really look forward to him putting that through.”

    Obamacare was modeled after Romney’s health care plan in MA. There’s no absolutely no significant difference between the two other than the face behind the plan – it’s all spin!

    What a POS Julian Robertson has become, but that’s the result of a Fascist State where money and power corrupts. I’m in NO way defending Obama as he’s a Fascist too. The bottom line is there’s absolutely no difference between the Right & Left other than wedge issues which fool the ignorant into believing there is a difference.

  • BT London

    It’s true that both parties are OK with the whitehouse assassinating US citizens. That bothers me a lot.

    What bothers me even more is the idiotic obsession of Pete Peterson and co with cutting the deficit. Pete Peterson is the greatest threat to the United States and people need to start saying it.

  • stevef

    How it bothers anybody that we kill terrorist amazes me. It’s war, and you can’t fight a war in a court room. I understand mistakes are made, but mistakes are made in the courtrooms too. Our enemy’s love guys like you, because you make their wars against our way of life easier.

  • The Undergrad

    Wish Robertson talked more about the hedge fund community’s psychology, rather than wasting so much time on politics.

  • DanH

    Robertson is just on a political rant in this video. IT’s totally disappointing.

  • Malmo

    Robertson as political shill. Yuk. I’m voting for neither Obama or Romney. Will write in Roche if they let me :).

  • Lance

    Ironically, Obama may slash more than Romney — Romney would have another election to face, Obama would not. But neither is likely to slash very much. The rhetoric has shifted. Early on, Romney was going to “balance the budget” (albeit way out there, but balance). Now he’s going to “get us on track toward a balanced budget.” He’s knows he can’t balance it of course, so he’s trying to squirm away from being hemmed in by stronger deficit language should he win. They don’t even bother to trot out the funny math that shows they can get the budget balanced in 20 years anymore. Just “on track” baby.

  • http://theartofsimpletrading.wordpress.com TAOST

    JR should have stopped with his comments on the hedge fund community… Those comments were a bit far fetched, but at least an area in which he has some remaining credibility… His political comments detract from that credibility because it paints him as political shill…

  • http://www.altiplanofs.com/ deanna wynn

    Great post! Thanks for sharing your great views and opinions regarding hedge funds. Keep posting more informative article!