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?...mrSI&refer=home
Suspend redemptions? Won’t customers sue their balls off?
I’m no HF manager, but I think they typically have the option to deny redemptions.
I would sure like to read the investor letter, but there is no basis for suing them. In the offering memorandum it surely says something like “manager may temporarily refuse redmeption requests if such request would be unduly detrimental to remaining fund participants”. In this case, it seems that Tudor has been hurt by a more liquid redemption policy than the underlying fund investments. Anyway, every time I have ever been to Tudor, I meet very capable, smart people who I would be honored to have manage my money. I would personally just ride it out.
JoeyDVivre Wrote: ------------------------------------------------------- > I would sure like to read the investor letter, but > there is no basis for suing them. In the offering > memorandum it surely says something like “manager > may temporarily refuse redmeption requests if such > request would be unduly detrimental to remaining > fund participants”. In this case, it seems that > Tudor has been hurt by a more liquid redemption > policy than the underlying fund investments. > > Anyway, every time I have ever been to Tudor, I > meet very capable, smart people who I would be > honored to have manage my money. I would > personally just ride it out. Especially since, if rumors are correct, they’re only down 5% this year…
And up on average something like 20% every other year…
JoeyDVivre Wrote: ------------------------------------------------------- > I would sure like to read the investor letter, but > there is no basis for suing them. In the offering > memorandum it surely says something like “manager > may temporarily refuse redmeption requests if such > request would be unduly detrimental to remaining > fund participants”. In this case, it seems that > Tudor has been hurt by a more liquid redemption > policy than the underlying fund investments. > > Anyway, every time I have ever been to Tudor, I > meet very capable, smart people who I would be > honored to have manage my money. I would > personally just ride it out. Ask and ye shall receive: http://dealbreaker.com/images/thumbs/Tudor-BVI-letter-281108.pdf Also can’t believe anyone would yank money from them now, although could be FoF redemption.
Thanks - That’s about what I thought it would be. Just good management in a troubled market, IMHO.
I read in Schwager’s “Market Wizards” that Tudor invests ~95% of his fortune in his own funds because he believes it’s the safest place to park them.
I have friends who manage portfolios there. Smart people who understand tail risks. I dont see them blowing up. In fact I dont think there’s a year (including this one) when they have lost money (the people I know, that is, not the whole fund)
Many hedge funds are putting on gates in anticipation of high year end redemptions, this isnt really news to investors. The standard investor letter will say that it does not make sense to liquidate portfolios at prices that are not economically attractive. The gates will only be lifted when the massive deleveraging stops - this might actually help stem the flow of redemptions that is causing all asset classes to tank. Or it could be a finger in a dyke…