CNBC’s Kelly Evans reports the highlights of her conversation with Tiger Management’s Julian Robertson, including his thoughts on NAFTA as well as investing in airlines and financials.
Q1 hedge fund letters, conference, scoops etc, Also read Lear Capital: Financial Products You Should Avoid?
Julian Robertson: Banks Are In Terrific Shape
Transcript
We sat down for an exclusive interview with Tiger Management founder Julian Robertson. We hit on a variety of topics including how a potential break down of NAFTA could impact some of his investments. Here's what he had to say.
I think there will be some breakdowns probably now too. And I don't think that's the end of the world. All the other hand I think here Canada has three times next year's cash flow is not an expensive stock and it's a beautifully run good company and the fact that the cash flow is going to be 30 percent I think speaks well forward. What do you think about the U.S. airlines. Anything there that's compelling to you as it was to Warren Buffett last year while about running out of Ryanair and your European one. Love Canada. I don't have that many favorites in the U.S. right now. Is that true for U.S. stocks. We talked about some of the tech names that you like but do you see more opportunities abroad right now. No I really generally see more opportunities here. I just think that airlines are a special thing and I think Air Canada and Ryan are special. What about the banks. J.P. Morgan Bank of America names you still like Lovel and they are very very reasonable in relation to earnings. We see them creeping up on huge cash flow yields next year and thereafter. I think the banks are in terrific shape and I love J.P. Morgan Bank of America. Just those two are all of like a lot of them. That's where my money is.
But there are others I like and will probably put some money and some other ones to name like Goldman for example. I would think Goldman would be a very good thing. Morgan Stanley and Morgan Stanley both definitely there. I mean I would call them investment banks but I certainly would call them attractive banks whether investment or otherwise and regional banks the smaller players don't see much need to get involved in those when you've got all these great big ones the big ones have had they have trading now. And that's been a concern the last couple of years. But maybe that's starting to look better. There's also people saying because of that again they said AT&T ruling this week there's going to be a ton of deals and that they'll benefit from being investment bankers. Is that part of it or do you just think they're cheap enough that you like them anyway. Not all of them without the money they go make some investment.
Watch CNBC's full interview with billionaire investor Julian Robertson
Legendary technology investor Julian Robertson speaks with CNBC's "Closing Bell."
Watch CNBC's full interview with billionaire investor Julian Robertson from CNBC.
