Morgan Creek Capital's Q1 Letter: Learning From Julian Robertson

Mark Yusko is out with Morgan Creek Capital Management's first quarter letter.  In it, he talks about learning from Julian Robertson, the legendary money manager from Tiger Management.

The most notable takeaway here is that Robertson has become bearish.  Yusko walks us through the previous times Robertson has been negative, why he felt that way, and what transpired. 

Yusko has titled his commentary "Not Lyin', The Big Tiger's a Bear, Oh My!"  Since Julian only turns negative at certain times, he feels it prudent to pay attention when this occurs.

This time around, Robertson is concerned that the Fed has essentially inflated asset prices and he believes that once they start tightening, there will be pain in equities.

Embedded below is Morgan Creek's Q1 letter:



You can download a .pdf copy here.


And if you missed it, be sure to view Robertson's recent interview as well.

Mark Yusko & Morgan Creek Capital's Q2 Review and Outlook

Today we present Mark Yusko's second quarter review and outlook from Morgan Creek Capital Management.

Embedded below is the Q2 review:




For more on this manager, we've also previously highlighted Mark Yusko's presentation on Japan from The Grant's Conference.

Mark Yusko's Presentation on Japan From The Grant's Conference

Today we wanted to highlight a presentation that Mark Yusko of Morgan Creek Capital Management gave at the Spring 2013 Grant's Interest Rate Observer Conference.  Entitled "This Time For the Money", his presentation focused on Japan.

In it, he argued that the current rally in Japanese equities is just getting started and that there's a lot of room to run.  This, he points out, is largely affected by "Abenomics" where the government has unveiled a massive attempt to combat Japanese deflation via aggressive monetary easing.

Yusko points out that there will be winners and losers in Japan and offers some ideas.  As potential winners, he listed Toyota, Marubeni, Mitsui, Mitsubishi UFJ, Sumitomo Mitsui Financial, Mizuho, and Japan Securities Finance.

As far as potential losers go, he questioned whether or not the short squeeze is over in names such as Sharp, Panasonic, Sony, and Fujitsu.  Yusko also singled out airlines and food companies as they struggled during the last reflation.  Will it be different this time around?

Embedded below is Mark Yusko's presentation from the Grant's Conference:


 

For other investor thoughts on the country, head to Kyle Bass' thoughts on Japan.

Morgan Creek Capital Asks: Is China A Real Estate Bubble?

Michael Hennessy, Managing Director at Morgan Creek Capital Management, has penned an interesting piece entitled, "China: A Real Estate Bubble, Or No Trouble?"

In it, he dives into the hot debate and notes that China's situation is different than the US in that it was fueled by public development whereas the US was fueled by private development.

In the end, Hennessy concludes that, "it is clear that China's economy is slowing; however, this seems to be fully discounted in valuations, and rather severely at that."

Kynikos Associates' Jim Chanos has been an outspoken bear on China (and in particular their property market). We've also posted up the hedge fund bear thesis on China.

Below are Hennessy's thoughts on whether or not China is a real estate bubble:




Hat tip to Zach for digging this up.