Tiger Management May Have Just the Right Portfolio for an Eventual Fed Pivot
Investing.com | May 11, 2023 06:22AM ET
- US inflation data did not provide a clear answer on a possible Fed pivot.
- The market continues to price in the start of rate cuts as early as September.
- Technology portfolios stand to gain the most if the market scenario plays out. Will Tiger Global Management return to an upward trajectory?
Yesterday, the market received the US inflation data with moderate optimism. The session ended with the S&P 500 index up 0.45% and the Nasdaq up 1.04%.
The headline CPI reading, at 4.9% year-on-year, was lower than the forecasted 5%. However, the Federal Reserve remains concerned about the high core inflation, which stands at 5.5% year-on-year.
In the event of rapid interest rate cuts in September, the stock market could rally, and technology companies could be the primary beneficiaries.
Julian Robertson - A Financial Markets Legend
Julian Robertson, considered one of the most prominent investors in history, died last August at 90. He began his serious investment career in 1980 by founding the Tiger Management Fund with $8.8 million in capital.
As a result of an impressive average annual return of 32%, the fund's capitalization reached $22 billion in 1998.
A year after the fund closed in 2000, the next iteration of the firm was Tiger Global Management, which still exists today and was founded by one of the analysts who grew up under Julian Robertson's wing - Chase Coleman III.
Currently, the firm's capital is divided between two strategies, one of which is investing in publicly traded companies.
According to a report available as of February 14, 2023, the fund's portfolio primarily includes companies in the technology sector, with the biggest stake in Microsoft (NASDAQ:MSFT).
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