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Tiger wounded as losses bite
November 2, 1998: 6:41 a.m. ET

Multi-billion dollar autumn losses plunge hedge fund into the red
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LONDON (CNNfn) - Tiger Management lost $5.5 billion in September and October, sending the hedge fund managed by Julian Robertson Jr. spinning into the red for the year, according to a press report Monday.
     At Tiger's annual meeting Thursday, Robertson told investors Tiger had lost $3.4 billion by that point in October, according to The Wall Street Journal. The loss accounted for 17 percent of its assets under management.
     After losing $2.1 billion in September, Tiger is now down one percent down for the year, the Journal said. The fund now has about $17 billion under management.
     It has been a bad quarter for hedge funds. Following the near-collapse of Long-Term Capital Management, George Soros announced he was closing some of his funds and restructuring others in response to trading losses.
     Tiger has been one of the best performing hedge funds of the year. LTCM had lost about 90 percent of its capital before its bail-out, and the Journal said the average fund has lost about three percent of its value.
     Tiger, a "macro" manager which takes large directional bets on stocks, bonds and currencies, lost $2 billion in one day last month when the yen surged against the dollar.
     The fund has liquidated up to $30 billion of its investments recently, according to the Journal, reducing its debt ratio to four to one from $5.50 for each dollar invested.
     This allows the fund to meet requests from investors who want to cash out at the end of the year and to more easily meet lenders' demands for more collateral. Back to top


Soros reshuffles funds - Oct. 27, 1998

Robertson: high on hedges - Oct. 12, 1998


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