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stake to a strategic partner. Other possibilities were issuing preferred stock or selling participation in Tiger's stream of revenue that might include a payment method.9

In 1998, Robertson hired Philip Duff, a former Morgan Stanley chief financial officer, as chief operating officer. One of Duff's objectives was to help map out a succession plan and give the firm more structure.

In August 1998, Tiger lost $600 million when Russia defaulted on its debt. Tiger also got hit with a $2 billion loss on the Japanese yen later in 1998. Robertson refocused from the global macro mode to the strategy he did best—stock picking. Robertson followed a value approach—buying stocks at low prices and with good earnings prospects. Undervalued stocks included airline, automobile, and paper stocks of the Old Economy.

While the firm owned stock in Microsoft and Samsung Electronics, it steered clear of high-flying Internet stocks without earnings. According to SEC filings, at the end of 1999 Tiger owned a 24.8 percent stake in US Airways, 14.8 percent of United Asset Management, 7.2 percent of Sealed Air, and 3.7 percent of Bear Stearns. As Robertson stuck by Old Economy stocks, his performance lagged soaring technology stocks that attracted younger managers.

Redemptions were hurting; he had to sell holdings from his portfolio to meet redemptions. A vicious circle was created. Selling holdings hurt performance, which led to more redemptions, and so on. Between August 1998 and April 2000, $7.65 billion had been withdrawn.10 In October 1999, Tiger announced that it would no longer redeem assets on a quarterly basis, but starting in March 31, 2000, it would allow redemptions twice a year.

Tiger had approximately 180 employees. While Robertson lost about 25 analysts in 1999/2000, he hired 15. By that time, some structure existed. There was a core of 12 senior analysts who comprised 10 industry teams, a currency and bond team, and a commodity team.

At Tiger's annual meeting in October 1999, when these key changes were announced, Robertson also revealed that he had lowered the amount he borrowed in stocks from 2.8 times capital to 1.4 times.

But on March 31, 2000, Robertson announced he was retiring; he was 67 years old. By that time, assets in the six hedge funds had dwindled to $6 billion, of which $1.5 billion was his own. He wrote to investors: "There is no point in subjecting our investors to risk in a