31 Comments
 

Cubs yes, but does he seed those cubs like Julian did, or show any interest in doing so, or foster a strong mentorship relationship like Julian did? Incredibly high turnover across all the pod shops also necessitates many cubs by nature

 
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I can't remember the book that talked about it, but I think it summed up the whole hype about Julian Robertson and the tiger cubs pretty well. It references buffett and the whole thing about flipping a coin "x" number of times; basically raises the question of whether or not hedge funds actually produce strong risk adjusted returns / can outperform the market. The idea being that on average they do not, but if you have enough funds, probabilistically there are going to be those who outperform over a 10/20/30 year time period, and that naturally those funds will also attract the majority of capital, making them look like they know what they are doing. 

But then there is an outlier, because Julian Roberston not only outperformed for a period of time, but those that worked with him and ventured out on their own also outperformed (for a period of time). Which raises the question, why did so many of the people who worked with him / were mentored in his style tend to outperform if it is all just random. Hence the original tiger cub hype was born. We got a second new wave more recently as well. 

If I had to guess, there is also some mix between 1) markets being conducive to his philosophy over those time periods (not only referencing the 2017-2021 hype period) and  2) enough seed money or AUM in general allows you to pay for talent and the resources necessary to run a firm that can find alpha and 3) the process was conducive to producing outsized returns.

I would agree that Ken Griffin is probably the closest to that. Idk if he seeded these PMs that have spun out and "mentored" them, but it is clear that they are replicating the business model. Also Idk if Ken is even that great of an investor himself, rather he understood the process and business structure that would succeed

 

Great write up though Ken Griffin is too selfish to really fit the mold. I wonder if there are better examples of leaders or firms... 

 

The impressive thing about Robertson is that the cubs all have very different styles but still succeeded - you had commodities (slate path/osprarie), large cap L/S (Viking), tech (tiger, coatue), healthcare (Bridger), many funds of various durations approaches and types. D1/Tiger was only a small subset of the tiger community and the different cubs are extremely different from one another

 

I can't remember the book that talked about it, but I think it summed up the whole hype about Julian Robertson

Any chance it's More Money than God? He made a case for Julian's alpha, in the appendix, by begging the question of the Tiger Cubs' success. Also referenced the famous Buffett essay 'Superinvestors of Graham and Doddsville'

 

Is it rare for top performing PM’s at MM’s to go start their own shop??

Seems like the hype around SM’s is that many top guys set up their own fund…

Newbie in the space so that may be a poor question to ask.

 

Alex Denner. Healthcare legend. Former Icahn healthcare analyst, now running his own shop. Think he has a doctorate in biomedical sciences or smtg

 

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