Tudor Investment Corporation, founded by Paul Tudor Jones, has opened a $500 million hedge fund which, according to those briefed, is the first new fund to bet on macroeconomic trends in ten years.
The Tudor Group of companies is a group of affiliated companies engaged in investment management of client and proprietary assets. Paul Tudor Jones II formed Tudor Investment Corporation, the first of the Tudor Group companies, in 1980 with $300, 000 which has now become a leading asset management company with an estimated worth of $3.3 billion (March, 2011). The Tudor Group manages assets across fixed income, commodities, currencies, public and private equities and related derivative instruments.
Paul Tudor Jones, who is famous for his predictions about Black Monday 1987, and has earned the title of ‘The Macro Trader’ due to his diversified investment methodology in including global macro trading, equity investment, event-driven strategies and his technical trading system.
Mr Jones, who oversees the main Tudor BVI Global, will not be among the fourteen portfolio managers of the Tudor Discretionary Macro Portfolios, which has been seeded with $150 million from the firm. Tudor BVI Global, with $9 billion is assets, has limited client deposits since 2010 so it’s performance is not hindered. The new fund will allow the experienced managers at Tudor to act upon the increase seen this year in investors being attracted to wager on macroeconomic events. According to Hedge Fund Research macro funds, despite expectations that they will benefit from big macroeconomic events such as the European sovereign debt crisis, they have returned just 1.5% in the first five months of the year.
Tudor BVI has returned around 2% this year through to June 22 and has produced average annual returns of 21% since the fund’s foundation in 1986, according to the investors.
The fund will have a seven person investment committee that Jones, as the funds chairman, will sit on. The managers include Spencer Lampert, Bjorn Nielson, Andrew Bound, Adam Grunfeld, Richard Jackson and Aadarsh Malde. Both Lampert and Nielson have been with the firm for over twenty years.