I sure hope Julian Robertson is a Ryan Reynolds fan. And although I doubt the MacroTourist Letter is on the legendary hedge fund manager’s daily reading list, if he happens across this post, Julian (and the rest of you on the board) – know it was all done with tongue firmly in cheek (kind of).
Ryan’s movie DeadPool is by far and away, the best Marvel movie ever made. I guess you can disagree with that statement – that’s what makes a market, but you would still be wrong.
For those who haven’t seen the movie, Ryan Reynold’s character frequents a bar that has a DeadPool. There, listed for everyone to see, are the bets on who will die first. Whoever “owns” the first person to die, wins the pool.
Today’s market is in desperate need of a “Value Investor’s DeadPool.” With the constant fleeing of capital from active management into passive (most of which can certainly not be described as moving into “value”), the pain for those investors still believing that buying cheap companies has merit is intense.
And as I watch this passive investing renaissance unfold, all I can think about is the last time value was so scorned. It was the year 2000, and the DotCom bubble was in full force.
The S&P value versus growth index ratio had been plummeting for four years, and investors were openly mocking those who didn’t “get it” and embrace the new technology era. Into this mania, one of the greatest value investors of all time, Julian Robertson decided enough was enough, and he closed his Tiger Hedge Fund awfully close to the bottom.
For kicks, I dug up his final letter to investors. The funny part? It seems just as applicable today as 17-years ago.
Tiger Management released the following letter on March 30, 2000, to its limited partners, announcing the closure of its funds.