WSJ on yet ANOTHER hedge fund in trouble...how many this week? 4th announcement of hedge fund troubles? This came to me as an alert, BTW....2Aug doesn't start for another 30 minutes......so something they think I should know pre-market....betcha market will go down even further on Thursday, again.....
Tudor Investment Hedge Funds
Turn In Downbeat July Performance
By GREGORY ZUCKERMAN
August 2, 2007
A hedge fund run by Paul Tudor Jones's Tudor Investment Corp., which manages more than $20 billion, suffered sizable losses in July.
The Raptor Fund, a $9 billion hedge fund run by James Pallotta in Boston, dropped 9% through July 27, and is down almost 3% in 2007, according to investors. A fund that Mr. Jones runs in Greenwich, Conn., the $10.3 billion Tudor BVI Fund, lost slightly more than 3% through July 27, though it is up 4.6% for the year.
The losses -- which came as the overall market has been battered -- are nonetheless surprising because both managers have among the best track records in the hedge-fund world. Some investors said the results were disappointing, but noted that Mr. Jones has scored an average annual return of more than 24% since launching his fund in 1986, while Mr. Pallotta has generated annual gains of more than 19% since 1993. They also said these funds can be volatile because of the trading strategies employed.
Investors have been waiting to see how hedge funds fared in July, a difficult month in various markets that saw the $3 billion hedge fund Sowood Capital Management collapse after losing more than 50% of its assets.
The losses at Tudor were reported earlier by Bloomberg News, which also reported losses of 3% in July for Caxton Associates' flagship hedge fund, run by Bruce Kovner.
Write to Gregory Zuckerman at gregory.zuckerman@wsj.com
