Julian Robertson on Greece/Europe, China & Various Stock Picks ~ market folly

Wednesday, July 1, 2015

Julian Robertson on Greece/Europe, China & Various Stock Picks

CNBC's Kelly Evans interviewed Tiger Management's Julian Robertson and he talked about a range of topics, including Greece and Europe, China, Puerto Rico, and various stocks.

He doesn't seem too terribly concerned by the situation in Greece in and of itself, but if contagion spreads to Spain or Italy and potentially other countries, then things could get dicey.

Robertson says European equities "have been a very good place to be and may still be ... but you certainly want to hedge the currency."

His main concern now is that we're in the midst of a serious credit bubble.  Money that normally would flow into bonds has been forced into stocks.  This is something he's mentioned previously as well.

On Chinese equities, he notes, "I think the prospects for Chinese companies... some of them are very great.  I have changed from Alibaba (BABA) to JD.com (JD) ... JD has an advantage in that it's never had any knock-off problems.  We are very bullish on JD now and we have sold Alibaba for it."  Our Hedge Fund Wisdom newsletter back in May highlighted that many Tiger Cub funds were betting big on JD.

Robertson continues to like Apple (AAPL) but he's not overly concerned about the Watch.  He said, "Apple would be selling at double or triple its present price now if this was the 70's or 80's."

Additionally, he continues to like Gilead Sciences (GILD).  He's been short Assured Guaranty (AGO) as well.

On his industry, Robertson notes that, "I think the hedge fund industry is suffering from the expansion of the industry."  He says now you're competing with so many other hedge funds whereas back in the day you were competing with less managers and less sophisticated rivals.

Embedded below is the video of Robertson's interview on CNBC:

For more on this legendary investor, head to Morgan Creek's Q1 letter on learning from Robertson.

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