This content is from: Portfolio

The Morning Brief: Paul Tudor Jones Suffers Sizable Redemptions

The hedge fund legend, having cut fees and staff earlier this year, has seen investors pull 15 percent of assets from his firm’s main fund.

  • By Stephen Taub

Oh how the mighty continue to fall. Investors yanked about 15 percent of the assets out of the main hedge fund managed by Paul Tudor Jones II’s Tudor Investment Corp. in the second quarter, according to a Bloomberg report. That puts the fund’s assets at $3.6 billion, or half of what they were a year ago, according to the report.

The redemptions came after the legendary macro trader earlier this year cut fees and employees. Jones’ flagship fund, Tudor BVI Global, had declined by 1.7 percent for the year as of July 14. It posted low single-digit gains in each of the three previous years and four of the past five years. Tudor is the latest among the older generation of hedge fund managers to suffer sizable redemptions and/or fee cuts, including John Paulson’s Paulson & Company, Jamie Dinan’s York Capital Management Global Advisors, Alan Howard’s Brevan Howard Capital Management, and Leon Cooperman’s Omega Advisors. Several have decided to shut down altogether, including Richard Perry’s Perry Corp. and Eric Mindich’s Eton Park Capital Management.

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Credit specialist Cheyne Capital has launched a group that will specialize in distressed securities. It will be run by Anthony Robertson, formerly head of leveraged finance at BlueBay Asset Management. The London company says the business was formed on the belief that the current credit cycle is coming to a close, which will create more market dislocation. The firm also said the strategy will take a value investing approach to take advantage of market inefficiencies “that will focus on the heightened illiquidity in European sub-investment grade credit.”

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Coatue Management participated in the latest $200 million financing of Reddit, the internet discussion site, according to techcrunch.com. The company is now worth $1.8 billion, according to the report. The company plans to use the proceeds to redesign its homepage.

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Caxton Corp. disclosed that as of July 25, it owned 5.2 percent of Garrison Capital, a business development company that invests primarily in the debt and equity of middle-market companies.

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Perceptive Advisors disclosed that as of July 5, it owned about 1.7 million shares of Dova Pharmaceuticals, or 6.8 percent of the clinical-stage pharmaceutical company specializing in rare diseases. The health care and drug-focused hedge fund firm did not own any shares of Dova in the first quarter, the most recent period for which this information is available.

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