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Julian Robertson says FANG stock valuations are ‘cheap’ versus the market

Storied hedge fund manager Julian Robertson believes technology standards are inexpensive compared to their growth prospects.

Robertson was asked in valuations in the technology sector.

“I don’t think the FANGs or the tech stocks are frothy at all. I reflect on relative to the rest of the market never have [these] stocks been this inexpensive,” he said on CNBC’s “Closing Bell” in an interview with Kelly Evans that published Thursday.

FANG stocks are a basket of high-growth technology stocks — Facebook, Amazon, Netflix and Alphabet (time was known as Google) that have led the bull run of the last nine years.

Robertson cited how decades ago the top technology trains traded at 50 times to 80 times earnings.

“None of them were the caliber of Google, Facebook and Microsoft,” he implied. “I love Facebook.”

He added Alphabet, Facebook and Microsoft trade on generally at about a 20 percent premium to the market’s valuation.

“That’s not unbelievable high for the greatest companies in the world,” he said.

Robertson revealed he doesn’t own all the FANG hoards. The manager doesn’t have a position in Netflix, he said.

The investor also suggested bank stocks such as J.P. Morgan Chase, Bank of America and Citigroup, along with airlines chooses including Ryanair and Air Canada.

“I think the banks are in terrific shape,” he suggested.

Robertson is the founder of Tiger Management. He once ran one of the largest, most flush hedge funds in the world back in the 1990s. The investor is also skilled in for his legacy of “Tiger Cubs,” or funds that former employees started, diverse of which have enjoyed great success. He has a net worth of $4.1 billion, be at one to Forbes.

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