As you've likely heard, some demanding Tudor investors, for whom a five percent loss for the year through November is apparently not good enough, have asked for their money back. Only prob is, Paul Tudor Jones and Co. are having none of this "give it back" nonsense. They are all about the "keep it" era (and why shouldn't they be? They're fabulous). So! For the time being, redemptions from the BVI Global fund have been put on ice, and investors have been asked very nicely if they'd be okay with the hedge fund being split in two. The A-team will retain the BVI name and take "easier-to-trade stocks, bonds, commodities and currencies. The B-team will be shafted with "hard-to-sell investments, mostly corporate bonds and loans from emerging markets," be dubbed "Legacy," and not pocket a performance fee until the assets make back their high watermark. Letter from PTJ after the jump.
Tudor BVI Letter [PDF]
Posted by guest , Dec 01, 2008 9:23AM
I wonder if he want his "donation" to the UVA PTJ Center returned?
Posted by guest , Dec 01, 2008 9:30AM
Tu Tudor, didn't read.
Posted by guest , Dec 01, 2008 9:52AM
There is going to come a point when Andrew Cuomo looks at this inability-to-withdraw stuff.
First, it was that when you wanted to withdraw, you got 90% of your money at year-end, then 10% after the audit, usually in March.
Then, you had to "lock up" your money at entry - for a period of years.
Then, when you wanted to withdraw, they gave you some cash, and securities.
Then, you couldn't withdraw, you were going to get a pro-rated portion of the portfolio and it would get sold off over time.
NOW, you can't withdraw, you're going to get the illiquid portion of the portfolio, and hope it can be sold over time.
That is a really bad progression. The HFs are writing their own death warrants - who will go INTO one if it's a roach motel?
Posted by guest , Dec 01, 2008 11:50AM
This is hilarious. It's basically hitting the reset button on the high water mark of assets they can still make any gains on while cutting off the anchor that was shitty assets.
I love it
Posted by guest , Dec 01, 2008 12:26PM
Well said #4, well said.
Posted by guest , Dec 01, 2008 1:08PM
Careful, # 4: PTJ & Macfarlane will chase you around the UVA yard with their bows and arrows. Ouchies!
Posted by guest , Dec 01, 2008 2:55PM
Abominable behanvior, but then look at his behavior in Greenwich.
Posted by guest , Dec 01, 2008 3:18PM
Every year PTJ decorates his house with a Christmas light extravaganza that makes Rockefeller Center look like a CVS display. The Belle Haven police stand by and you're allowed to drive by in your car, but not linger or look except at 15 mph. It must cost a bundle to install and keep lit.
I wonder if he'll do that this year. It wouldn't surprise me if he did, he is that arrogant.
Posted by guest , Dec 03, 2008 12:20AM
the xmas display is hilarious and designed to piss off the prissy wasp neighbors. its far from an arrogant display.
Posted by guest , Dec 09, 2008 7:19PM
PTJ's 'suspension of redemption' letter highlights his desire to leave a legacy that will "Never quit on an investor who is willing to stay with Tudor unless we are at or above high watermark." I believe the request from some is to PLEASE quit on an investor who is NOT willing to stay with Tudor.