Legendary hedge fund manager Julian Robertson believes technology stocks are inexpensive compared to their growth prospects.

Robertson was asked about valuations in the technology sector.

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

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

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

"None of them were the caliber of Google, Facebook and Microsoft," he said. "I love Facebook."

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

"That's not terribly high for the greatest companies in the world," he said.

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

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

"I think the banks are in terrific shape," he said.

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





