Tudor suspends withdrawal

Dec. 1 (Bloomberg) -- Tudor Investment Corp., the firm run by Paul Tudor Jones, temporarily suspended redemptions from the $10 billion BVI Global Fund Ltd. as it splits the hedge fund into two, according to a person familiar with the matter.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aBuuDHzkmrSI&refer=home

 

http://www.marketwatch.com/news/story/hedge-funds-try-hold-back/story.aspx?guid={F8B916EF-A1B8-4F07-A8FD-F0E121FC4A10}&dist=TNMostRead

 

only 12% of the fund is facing withdrawals and he needs to halt redemptions?

this shows that the -5% return ytd is highly suspect. i am certain that 95% of institutions generate their "smooth" returns by buying illiquid securities so that they can mark their own pnls at the end of each month.

 

Some of these guys are totally insolvent. What a scam. Split the fund in two because of the high water mark.

 

There was a joke going around about 3-4 years ago when somebody warned about investing in what he called -

'Hotel California Hedge Funds'

Basically you can check your money IN but won't be able to check it OUT.

Too true...........

 

================
Bid ask;
Assuming that Bloomberg article is correct;
he is asking the investors in the fund to approve the plan,
so its not a done deal perhaps.

Dont know PT Jones personally;
but its a matter of public record, he has given back before ...........

-5% may turn into more, as you say;
especially since according to the article''fund manage leaving to start his own fund'', and some '' toxic assets, like a sea anchor''.....

Still seems like low,shallow drawdowns over all;
John Henry would like those perhaps,
except one of his funds is up ++47.56 % year to date. [Futures mag,DEC 2008]

 

Reporting hedge fund returns is a science of its own.

 

just check OLD posts of makloda who thinks that paying 2% + 20 is a gift from the gods.
wait till this debacle is over and the25% of the funds have disappeared. the hedge fund industry will make the returns of the industry look like they came down from mt. olympus by not inc. the track records of the departed hedge funds.

why don't u simply say the old cliche.
figures never lie but liars always figure.
you were too kind to these white shoe scamsters.

 

Can you explain a bit more how this scheme works out? Do they drive the price of illiquide stocks up? What about the insiders? They stay put and don't sell to take advantage of the stock going up?

 

SAC charges 50% performance fees and his customers seem happy...

surf