julian robertson

Financiers take risks and make money, but have faced criticism from ancient times for not producing anything useful. The counterargument is that any economy can't grow without the financial innovations that root out the inefficient and the incompetent, and provide capital for business, says 'All the Money in the World' by Peter W. Bernstein and Annalyn Swan (www.landmarkonthenet.com).

"If nothing else, financiers are ingenious at recycling capital." Out of the busts of the early twenty-first century, even greater Forbes 400 fortunes have arisen, note the authors. "The successors to George Soros and Julian Robertson are a close-knit, secretive group of men in their thirties, forties, and fifties who often run funds half the size of their predecessors, but with more diverse strategies that also get out-size returns."

The book takes you on a tour of big wealth and its ways, and concludes with a discussion of the age-old question: does money make one happy? "Money may not bring happiness, but it brings such a good imitation that it is often hard to tell from the real thing," reads a quote of William Feather. "Money does not bring happiness. It brings complexity," says Kavitark Ram Shriram. And Ross Perot, a Forbes 400 member for 25 years, declares, "Money and happiness are unrelated."

A treasure of insights.

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Sacred and sustainable

Buddhists believe donation to others is an essential step on the path to full enlightenment, writes Bill Clinton in 'Giving' (www.rbooks.co.uk). "In Jewish law and tradition, giving, tzedakah, is obligatory, up to at least 10 per cent of income. The literal meaning the Hebrew word tzedakah is 'righteousness,' but it also is used to refer to justice and to giving to those in need," the author mentions.

"Islam also has made charity, zakat, obligatory for all those who embrace the faith. Muslims believe that all human beings should be one another's well-wishers, that the wealthy have a sacred duty to help the poor, disabled, and others in need." Likewise, Christians are taught to tithe a tenth of their income to the church.

All faiths make giving an imperative, the author observes. Believer or nonbeliever, we all live in an interdependent world in which everyone matters, and our survival depends upon an understanding that our common humanity is more important than our differences, reminds Clinton.

"Who's happier? The uniters or the dividers? The builders or the breakers? The givers or the takers?" he asks. "I think you know the answer," he adds.

Of great relevance to current times.

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Track the changing attitudes

"Prices are determined by one thing and one thing only, and that is people's changing attitudes toward the emerging fundamentals," says 'Martin Pring on Price Patterns' (www.tatamcgrawhill.com). "If it were not for the fact that these changing attitudes move in trends and that trends tend to perpetuate, market prices would be nothing more than a random event, which would mean that technicians would be out of business."

Pring defines technical analysis as 'the art of identifying a trend reversal at a relatively early stage and riding that trend until the weight of the evidence shows or proves that the trend has reversed." Look at price patterns, not in isolation, but as one indicator along with several other indicators, in the weight-of-the-evidence approach, the author guides. "Over the years, technicians have developed literally thousands of indicators," and you can select four or five indicators you feel comfortable with, he suggests.

Recommended addition to the serious investor's shelf.

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No ultimate victory

The Astors were invincible warriors, wandering and winning battles. Growing tired of their nomadic life, they built an imposing fortress and began to lead a life of merriment. Decades passed by, during which the enemies of Astors gathered strength. One silent night, the enemies attacked the fortress with cannons � a contraption that the Astors had not seen…

Narrating the story, J.R. Sterling writes in 'The Street-Smart Parables' (www.jaicobooks.com), that complacency can be big killer. Past success is past, and any strategy can get decayed, he counsels. "There is no ultimate victory in the new economy; there is only having the strength to battle another day," reads a quote of Jack Welch, aptly cited in the book.

Suggested daytime read.
By Michael Buteau

Oct. 2 (Bloomberg) -- A $1 million prize is being offered by Tiger Management LLC founder Julian Robertson for the winner of a golf event that may be telecast in the U.S. the same day as the Super Bowl.

Adam Scott and Aaron Baddeley of Australia, Justin Rose of England and Hunter Mahan of the U.S. have agreed to play in the two-day, 36-hole exhibition at Robertson's Cape Kidnappers course in New Zealand, the 75-year-old investment-fund chief said in a telephone interview.

``We don't have the final thing done yet, but I'd bet big on it,'' Robertson said. ``It came together pretty quickly. We just sort of put up the money and they came.''

The event will be taped Dec. 17-18, following the Australian Open golf tournament, with the playing format yet to be determined.

It is tentatively scheduled to be televised in the U.S. by CBS Inc. from 1 p.m.-3 p.m. New York time on Feb. 3, 2008, the same day as the National Football League's championship game, which is shown on News Corp.'s Fox network. The golf also might air Dec. 29-30, said Diana McCarty, a spokeswoman for Robertson.

CBS Sports programming director Rob Correa didn't immediately return a call seeking comment. Agents for Scott, Baddeley, Rose and Mahan didn't immediately return phone calls to their offices.

Made-for-television golf events are frequently produced during the offseason in North America, which began after the Tour Championship in Atlanta on Sept. 17. Top-ranked Tiger Woods stages his Target World Challenge in California on Dec. 13-16.

Television Prizes

The $1 million first-place prize in Robertson's event ranks among the highest for a made-for-television golf tournament. In June, Las Vegas golf professional Scott Piercy won $2 million in the Ultimate Game, an event televised by Fox.

The runner-up in Robertson's event will receive $200,000, with $150,000 for third place and $100,000 for fourth.

While Robertson, whose Tiger Management firm managed $21 billion in assets in 1998, has guaranteed the $1.45 million purse, the event might also have sponsors. Cape Kidnappers, ranked 10th on Golf Digest magazine's list of top courses outside the U.S., is located in Hawke's Bay, on the southern part of New Zealand's north island.

Attracting financial backing ``would be like trying to get sponsorship for a tournament in Wyoming,'' Robertson said. ``In New Zealand, there are just not that many big companies capable of handling something like this. It's a little more difficult.''

Robertson said he expects a maximum of 5,000 spectators to attend. The Tom Doak-designed course, with holes that snake along 500-foot limestone cliffs, presents ``certain hazards,'' he said.

``We don't really want an enormous amount of spectators,'' Robertson said. ``The only way to control the people is with ropes.''

Robertson hosted a similar exhibition in 2003 at another course he owns on the South Pacific island nation, Kauri Cliffs, between Fred Couples of the U.S. and Michael Campbell of New Zealand.

To contact the reporter on this story: Michael Buteau in Atlanta at Bloomberg, Schools Chancellor Joel I. Klein and United Federation of Teachers (UFT) President Randi Weingarten today announced an historic agreement to award cash bonuses to teachers at high-needs schools that raise student achievement. The schoolwide bonus program, a cash incentive program, will be implemented in about 200 of the City's highest-needs schools during the current school year, and expanded to roughly 400 schools in the 2008-09 school year.

Schools participating in the program whose students achieve significant measurable academic progress will receive bonus money, which they will distribute directly to teachers and other United Federation of Teachers (UFT) members. Schools that are not successful in meeting the performance benchmarks will receive no additional funds. In addition, the DOE and UFT today agreed to resolve a number of outstanding pension-related issues. The Mayor was joined at today's announcement by City Council Speaker Christine C. Quinn, City Comptroller William C. Thompson, Jr. and President and CEO of the Partnership for New York City Kathryn Wylde.

This is the largest initiative in the country to reward educators in high-needs schools on the basis of their schoolwide success in helping students achieve academically. The new initiative will be put in place above and beyond all previously agreed to salary and compensation agreements. This is the first time that New York City's public school educators will receive additional compensation based solely on their school's success in improving students academic achievement. Bonuses will be aligned with the Department of Education's (DOE) new Progress Reports, which measure students' academic performance and progress. Because only high-needs schools are eligible to participate in the program, it creates an incentive for great teachers to teach in City schools that serve high-needs, low-achieving students. It also helps the City reward its best teachers for helping students accomplish academic success by aligning incentives with student progress. This initiative is consistent with the most recent contract with the Council of School Supervisors and Administrators, which allows DOE to reward successful principals. The program will also encourage principals and teachers to collaborate in devising innovative solutions to students' individual learning needs and help schools excel � because only schools that meet academic targets on a schoolwide basis will be eligible for bonuses.

"We've reached a breakthrough agreement establishing a new program that will reward excellent performance by individuals and by entire schools," said Mayor Bloomberg. "We are rewarding our teachers who prove that they are the most successful in helping students make academic progress. This initiative will help us reward our great teachers and foster excellence in our public schools."

"We should offer our educators incentives not just to take on the toughest assignments, but also to get the best possible outcomes from their students," Chancellor Klein said. "This program will allow us to reward our most successful schools and educators. It will also help us motivate educators to work together to come up with innovative solutions to help our students and our schools excel. This supports and reinforces our Children First reforms, which drive decision-making and resources to schools, where they can have the greatest impact on student learning. Thank you to The Broad Foundation, the Robertson Foundation, the Partnership for New York City, and the UFT for helping us take this important step in recognizing and rewarding our great educators."

"This schoolwide bonus program recognizes and builds upon the UFT's core philosophy that students learn, achieve and benefit most when all educators in a school collaborate to provide the best possible education," said UFT President Weingarten. "It properly refocuses the misguided debate over individual merit pay. Respecting and understanding the importance of teamwork and collaboration is precisely why the UFT enthusiastically supports this schoolwide initiative and has consistently opposed the idea of individual merit pay for teachers � especially when based solely on student test scores."

"Today's announcement by the Department of Education and the United Federation of Teachers marks a great victory for the students of New York City," said Speaker Quinn. "This agreement provides our hard working teachers with a fair retirement plan that rewards their dedication, while also supporting those schools that are making changes for the better. The Council is proud to have played a part in these discussions, and I commend Mayor Bloomberg, Chancellor Klein and UFT President Randi Weingarten for their efforts on behalf of New York City's teachers and students."

"There is no question that if we are to attract and retain teachers in New York, that we must be able to create an environment where members of this profession have more reason to hope that they can succeed and thrive," said Comptroller Bill Thompson. "Today we are adding one more incentive to help keep experienced, dedicated teachers in New York. I commend Mayor Bloomberg for adopting a wise approach not only to retain teaches but to improve student performance."

The Schoolwide Performance Bonus Program

Approximately 15 percent, or roughly 200, of the highest-need schools in New York City will be eligible to participate in the program, expanding to at least 30 percent, or roughly 400 schools, next year contingent on funding availability. While the 200 schools that serve the highest-needs populations will be invited to participate in the program, 55 percent of the UFT-represented staff at a school and the principal must vote to accept the offer in order to qualify for bonuses.

The schools participating in the program will be eligible to receive bonuses based on DOE Progress Report measures of student performance and progress. The criteria for awarding funds to schools will be determined by the DOE in consultation with the UFT and announced to schools at the start of the program. Criteria will be aligned with the two key Progress Report factors, student performance and progress. Entire schools � not just individual classrooms � must excel to be eligible for bonuses.

Each participating school will have a four member "compensation committee," which will decide how to distribute the funds. Each school will receive enough money to give each full-time UFT educator $3,000. While compensation committees could distribute the funds evenly to all UFT members, they could also differentiate those bonuses based on individual contributions. The compensation committee at each school will include the principal, a designee of the principal, and two UFT members chosen by the UFT members of the school. The committees' work will reinforce the teamwork concept that is built into this program. Members of the committee must reach agreement on how to distribute the funds before any funds are sent to the school.

In its first year, participating educators will be eligible to receive about $20 million in bonuses. These dollars are being raised privately and, so far, commitments have been made by The Eli and Edythe Broad Foundation, the Robertson Foundation, and the Partnership for New York City. The total amount distributed will be contingent on schools' results. In future years, this program will be publicly funded.

"We know from experience in other large school districts that linking performance and pay provides a powerful incentive," said Eli Broad, philanthropist and founder of The Eli and Edythe Broad Foundation. "Virtually every other industry compensates employees based on how well they perform. We believe the time has come to extend this concept to one of the most important professions in this country: teachers. The very best teachers -- those most effective at improving the academic performance of their students -- should be rewarded. We applaud the mayor, chancellor and Randi Weingarten for agreeing to introduce this important lever to raise student achievement in New York City."

"The agreement to recognize and reward teachers in schools who succeed in the City's most challenging public schools is the most important breakthrough in our education system since mayoral control was instituted in 2002," said Partnership for New York City President and CEO Kathryn Wylde. "The business community congratulates the leadership of the UFT, as well as the Mayor and Chancellor, for coming up with an innovative approach to reward excellence and encourage teamwork."

"Incentive pay for teachers and accountability of management are essential for improvement of public schools," said Robertson Foundation Founder Julian Robertson. "We are fortunate to have such a program and we support it one hundred percent."

Pension Legislation

In the 2005 contract settlement with the UFT, the City agreed to support state legislation to amend current pension provisions for current and future members of the Teachers Retirement System (TRS) and certain members of the Board of Education Retirement System (BERS) if an agreement could be reached on how employees would pay for any additional cost. The City and the UFT have now reached agreement on the issue and the City will support state legislation that would allow, for a six-month period, current members to opt into a program that would reduce the number of years of service required for retirement by five years, from 30 to 25, provided the members increase their contribution by 1.85 percent. The legislation would require a 1.85 percent increase in contributions for future members, whose years of service required for retirement would be reduced by three years, from 30 to 27. The minimum age of retirement would remain at 55 years of age for both future and current employees.

Litigation Settlement

The City and the UFT also announced settlement of a longstanding pension dispute that concerns the retirement benefits payable to approximately 40,000 retirees and active teachers. The dispute centered on whether the City, since the pension plan's creation in 1970, had properly credited the amount of interest earned on member contributions made annually into the Pension Fund.

Under the settlement announced today, the City has agreed to resolve the dispute by supplementing the retirement benefits for the affected group by a total of $160 million over the appropriate actuarially calculated period, which is normally approximately ten years. The City risked being required by court to pay a significantly higher amount had this matter gone to judgment.

The Americans are still waiting for their novel, but his legacy in New Zealand is still going strong.

That legacy comprises not just a couple of the world's most famous golf courses - Kauri Cliffs and Cape Kidnappers - but a son too.

Jay, formally known as Julian H Robertson III, has been in the country for four years, initially managing Kauri Cliffs.

Since July he has overseen construction of the luxury lodge costing tens of millions of dollars at Cape Kidnappers, due to open at the beginning of next month.

The second of three sons, Jay was just a few months old when his father brought him here. His dad's love of the country didn't rub off then, but it did when as a 20-year-old he spent six weeks fly-fishing around the South Island.

These days the 30-year-old is flat out working 11-hour days overseeing construction of the 24-room lodge.

He is keen to talk about the new lodge. He's more interested, though, in knowing what others think of the place. His speech is littered with the phrase "I don't know ... what do y'all think?".

The Cape Kidnappers golf course and subsequent accommodation development has drawn its share of detractors over the years.

Plans for the original lodge - which included a sunset room tunnelled into a cliff - were canned after its resource consent approval was appealed against and overturned in the Environment Court in December 2004.

The level of opposition to the lodge surprised the Robertsons - and, it's fair to say, a good deal of locals - and while not wanting to dwell on it, Jay says his father now thinks the Environment Court decision was the best thing that could have happened.

"It was going to cost so much to build it would never have been profitable.

"It would have been amazing for the area though. To have had that ... I mean where else would you stay on the edge of a cliff. Can you imagine that? It was going to be amazing. Architecturally it would have been world-class. We felt saddest for (Auckland architect) Andrew Patterson not to have been able to build it."

He says the tricky thing about running a world-class luxury resort and keeping it to the standard expected by the sort of people who patronise these places is making it acceptable to the local population - especially if it is on an iconic landscape.

There is no question the development has, and will be, a boon to the local economy. Hordes of local tradesmen have been employed (up to 200 a day during construction), the course and lodge will employ about 70 full-time staff when finished, and guests are certainly likely to contribute to local businesses.

One gets the impression Jay would like nothing more than for locals to acknowledge what is going on at the Cape.

"We've been thinking about opening the place up for a day. What do y'all think? You think that's crazy? We're not sure. I've been scratching my head over this for some time."

In the meantime, as ever, any golfer keen to have a look around the place is welcome to go up for a look, provided they call and arrange a time to do so.

The lodge, which is a kilometre from the clubhouse and about 50 metres higher, consists of several buildings, all of which have panoramic views from the Ruahines and Heretaunga plains to the west, Mahia Peninsula to the north and the vast expanse of Pacific to the east.

Between the lodge and the sea lies the golf course, which you might (wrongly) assume would be the main drawcard for guests using the lodge.

"There's just not enough golfers to support a lodge like that," says Jay.

"There are just not enough golfers coming to New Zealand to warrant having a 24-bedroom lodge up there. When we opened Kauri Cliffs we really targeted the golf market and that really hurt us because there are so many people out there who don't like golf.

"They think `Kauri Cliffs' and they think golf course. They don't think luxury accommodation. So we shifted the emphasis in the marketing and now just one in four people staying there are golfers."

The Cape Kidnappers lodge is on a par with Kauri Cliffs as far as quality goes, but the experience is completely different, Jay says.

"The biggest difference to Kauri Cliffs is the destination. A lot of guests never leave that property. Here, we have the greatest wineries in New Zealand, the best fly-fishing, we've got the gannets, beaches, and we've got one of the largest areas of coastal kanuka in the country right on our doorstep ... It's pretty amazing," he says.

Raised on Long Island, New York, Jay spent four years in Florida where he completed a hotel management programme at the 1500-room Boca Raton Resort.

He started as a telephone operator and moved his way up, spending any free time fly-fishing in the bayous. He hasn't had much spare time lately, but when it comes up he's usually to be found casting a line on the Tukituki River.

He hopes to get more time on the river after the lodge opens. Bookings, he says, are pretty good to date - mostly by Americans and Canadians.

"My intention right now is to get this project off the ground.

"You know, these projects are so dear to my family. With the lodging we created at Kauri Cliffs and what we're creating here, the experience everyone gets is of coming and being a member of someone's home.

"When guests wake up here in the morning they'll walk out on to their own private golf course. Sure there may be a few other golfers out there, but it's probably one of the least- played golf courses in the world.

"We don't advertise. We'd rather take five years getting this place full and running correctly.

"Anyone can buy advertising and put it in people's faces, but what really gets people coming is if everyone leaving tells others 'that was the best experience I've ever had'."

LIFE ON THE FARM

The lodge, known as 'The Farm at Cape Kidnappers', is to open on November 1.

Facilities include two dining rooms featuring gourmet a la carte meals, a library/ private meeting room, a wine cellar and tasting room. Also in the complex are a computer room, a fitness centre and an outdoor 15-metre heated pool, plus a spa and pool cabana.

The lodge has 24 rooms and a four-bedroom cottage. The guest rooms vary in size and location, with prices ranging from $320 a night in low season to $10,000 a night (yes, $10,000) in the cottage during high season.