Paul Tudor Jones has taken a big hit. The hedge fund manager is facing $1 billion in redemptions from a number of investors. Bloomberg reports that a number of managers at Tudor Investment Corporation are also planning to leave. Paul Tudor’s deputy chief operating officer, Richard Puma, is also going to exit, according to Bloomberg’s sources. Puma has worked at the firm for three years. This would be the second time Puma would be leaving Tudor Investment; he previously served as Head of U.S. Operations from 1995-2003.
Interesting article. He was able to save investors from the 2008 bloodbath, however that wasn't enough to satisfy the continuation of investor confidence with less than stellar performances thereafter. The fund manages $13 billion according to the article, so a $1 billion redemption is around 8%, not a mass exodus by any means, but still a hit on overall AUM. "Jones, 61, founded Tudor in 1980 and typically wagers on interest rates, commodities and currencies. His bets during the financial crisis helped investors dodge damage. Tudor’s Tensor Fund gained 36 percent in 2008, and BVI lost just 4.5 percent while stock markets plunged by 37 percent, including reinvested dividends."
He is one of my icons.. but most are replicating what he is doing probably, unless he goes the algo route.
With the New York pension fund pulling out of hedge funds, dark days are ahead. This industry will most likely start shrinking after years of steady growth.