Tudor Investors Ask to Pull More Than $1 Billion From Firmby
Redemption requests follow exit of several money managers
Main BVI Global Fund dropped 2.8 percent in first quarter
Tudor Investment Corp. clients have asked to pull more than $1 billion from the hedge fund firm founded by billionaire Paul Tudor Jones after three years of lackluster returns.
The investor redemption requests were made in recent weeks, according to two people with knowledge of the matter, and follow the exit of several money managers, some of whom spent decades at the firm. Another senior executive, Richard Puma, Tudor’s deputy chief operating officer, is planning to leave, the people said.
The withdrawals mark a setback for the $13 billion firm, one of the oldest and well regarded in the industry. BVI Global, Tudor’s main fund, which makes wagers on macroeconomic events, added to losses in March, pushing its decline to 2.8 percent in the first quarter, according to an investor document. That follows gains of 1.4 percent in 2015 and 3.5 percent in 2014.
Patrick Clifford, a spokesman for the firm with Abernathy MacGregor Group, declined to comment on the redemption requests and departures. Puma declined to comment.
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.
Like most hedge fund firms that make investments based on macroeconomic events, Tudor has had difficulty matching those outsized returns in the years since. The Tensor fund returned cash to investors in 2014 after three years of losses.
The average macro fund has trailed the Standard & Poor’s 500 Index since 2009, according to data from Hedge Fund Research Inc. While the average hedge fund made money in three of the past five years, the average macro fund did so only once, in 2014.
Puma, who reported to Tudor Co-President Michael Riccardi, is leaving after three years, people said. He previously worked at Tudor from 1995 to 2003 as head of U.S. operations, according to his LinkedIn.com profile.
Money managers Spencer Lampert and John De Palma left earlier this year, months after the retirement of Mark Heffernan, another money manager who’d spent decades at the firm.