Lisa Abramowicz, Columnist

Tudor's Existential Moment

When no one seems to know where markets and economies are heading, does the strategy even make sense?

September 26, 2016 at 5:21 PM UTC

By Lisa Abramowicz

Lisa Abramowicz is a co-host of "Bloomberg Surveillance" on Bloomberg TV.

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In general, the hedge-fund industry is starting to stabilize after more than a year of severe withdrawals. But there's one significant exception: For a handful of large macro funds, the pain continues.

These strategies -- which bet on broad economic and market trends -- reported $3.4 billion of withdrawals last month, the most of any hedge-fund type, according to a Sept. 21 report from eVestment.

Among those feeling the heat is Paul Tudor Jones's Tudor Investment Corp., one of the oldest and most expensive hedge-fund firms. After suffering more than $2 billion of investor withdrawals this year, it has cut 15 percent of its staff, including the closure of its Singapore trading desk, and lowered fees to retain clients, according to Bloomberg News reports.

On one level, this isn't surprising given the fact that Tudor's macro funds have lost value this year, despite bonds and stocks both posting substantial rallies.