July was an incredibly volatile month and some Hedge Funds have suffered losses, but the hysteria in the press is ridiculous. Take for instance, Paul Tudor Jones loses 3% in his main fund and the media acts as if he lost 30-40%. Incredible! See article below. === Tudor Hedge Funds Hit Problems By GREGORY ZUCKERMAN August 1, 2007 5:49 p.m. Two huge hedge funds run by Paul Tudor Jones's Tudor Investment Corp., which manages more than $20 billion, suffered sizable losses in July. The Raptor Fund, a $9 billion hedge fund run by James Pallotta in Boston, dropped 9% in the month, and is down almost 3% so far in 2007, according to investors. The fund that Mr. Jones runs in Greenwich, Conn., the $10.3 billion Tudor BVI Fund, lost just over 3% in July, though it is up 4.6% for the year. The losses are surprising because both managers have among the best track records in the hedge-fund world. Some investors said the results were disappointing, but noted that Mr. Jones has scored an average annual return of over 24% since launching his fund in 1986, while Mr. Pallotta has generated gains of over 19% since 1993. Investors have been waiting to see how hedge funds fared in July, a difficult month in various markets that saw $3 billion hedge fund Sowood Capital collapse after losing more than 50% of their assets. Write to Gregory Zuckerman at gregory.zuckerman@wsj.com RELATED ARTICLES AND BLOGS
I guess losses make better stories than boring stories about how many hedge funds outperformed the SP500 over the last 10 years with lower volatility.
LTCM almost brought down the system in 1998 and they mangaged less then 6 yards...it is something worth monitoiring...this PB situation looks like a ticking time bomb