Tudor Futures Fund To Close Due To Costs And Time Constraints

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According to a January 5th article from Bloomberg News, hedge fund magnate Paul Tudor Jones is planning to close his oldest hedge fund after more than three decades due to the cost and time required to run the fund relative to its size.

Kelly Bit  of Bloomberg notes that Tudor Investment Corp. will return the money in its $300 million Tudor Futures Fund to investors. Many investors in the fund are disappointed in the closure, as the fund run by Jones, 60, had posted gains every year since its inception in 1984, the person said.

Statement from Paul Tudor Jones on Tudor Futures Fund

“I decided to wind down Tudor Futures in recognition of my substantial ongoing responsibilities” as chief investment officer and co-chairman of Tudor Investment Corp., Tudor Jones wrote in a recent letter to investors. “I’ll continue to manage the firm’s flagship fund,” Tudor Jones wrote. The fund manager said also noted that, “I am and will continue to be the largest risk-taker for that fund for as far as I can see into the future.”

Tudor Investment Group is estimated to have close to $13 billion in assets under management.

Tudor Jones to focus attention on flagship fund

The source noted that managing the Tudor B.V.I. flagship was an increasingly difficult and time-consuming endeavor, and Tudor Jones felt the flagship fund needed his full attention right now. Of import, at an investor conference last May, Tudor Jones joked with the audience that macro trading had become so difficult, “I actually find myself daydreaming about winning ‘Dancing With the Stars’ on some days in the office.”

Despite the current tough macro trading environment, the flagship fund where Tudor Jones will now focus his energies had an annual return of 3.4% as of late December, based on an HSBC hedge-fund report. According to a recent investor newsletter, the Tudor B.V.I. flagship fund currently manages around $10.8 billion.

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