Hedge Fund (Paul Tudor Jones)
Paul Tudor Jones, who's facing his worst performance since the global financial crisis, wants to show investors he hasn’t lost his mojo.
Jones, the legendary macro trader, told investors in an Aug. 16, 2016-letter that he will manage a larger chunk of their money himself.
"We have to think outside the box," Jones, 61, said in the letter obtained by Bloomberg. "I firmly believe the changes we have made put us in a position to be successful even in this desultory macro environment."
Tudor, which Jones founded in 1980, hasn’t in recent years made the kind of profits it produced during its heyday. Its main fund, Tudor BVI Global, produced an average annual gain of about 26 percent from 1987 through 2007, which dropped to about 5.3 percent from 2008 through last year. The fund is down 2.3 percent this year, according to the letter. It lost 4.8 percent in 2008.
Jones, who started out as a cotton trader, is Tudor’s chief investment officer and largest risk taker. He said money managers must adapt to today’s zero-interest rate environment, which he expects to continue. The firm is imposing minimum levels of risk that its traders must take to remain in its manager lineup.
Jones, 61, who helped spawn the birth of the hedge fund industry, has struggled along with other macro managers to outperform for several years. Some long-time money managers have left Tudor as it has bled USD 3 billion in assets since June of last year.