The late Julian Robertson, founder of hedge fund Tiger Management, earned an annual return of 31.7% from its inception in 1980 to its peak in 1998, compared to 12.7% annual returns in the S&P 500.
Over the course of the second quarter, Tiger Management reduced its portfolio from 33 positions to merely 13. The most notable position change was in the Invesco QQQ Trust, Series 1 QQQ, as the hedge fund reduced its position by 325,000 shares, and also holds put options on these shares.
Although the billionaire investor reduced many positions as rising interest rates sent stocks lower, there are still a few stocks Robertson keeps in his arsenal for the long term. Here are two dividend stocks Tiger Management still holds through the turbulent markets.
Blackstone Group Inc BX is offering a dividend yield of 5.40% or $5.13 per share annually, making quarterly payments, with an inconsistent track record of increasing its dividends. Blackstone is one of the world’s largest alternative asset managers with $940.8 billion in total assets under management, including $683.8 billion in fee-earning assets under management, at the end of June 2022.
During the second quarter, Tiger Management reduced the hedge funds position by 305,000 shares, but is still the firm’s fourth most owned position, accounting for 12% of the portfolio or 286,500 shares owned.
Microsoft Corporation MSFT is offering a dividend yield of 1.02% or $2.48 per share annually, making quarterly payments, with a notable track record of increasing its dividends for 19 years. Microsoft licenses consumer and enterprise software and is known for its Windows operating systems and Office productivity suite.
Over the course of the second quarter, Tiger Management reduced its shares in Microsoft by 99,300 shares, yet it is still the third most owned position in the hedge fund, accounting for 12% of the portfolio or 104,100 shares owned.