Sat, Aug 13, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors

Tuesday, May 24, 2016

Komfie Manalo, Opalesque Asia:

Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performance, Bloomberg reported.

The move was revealed in a letter to investors released on Monday. Tudor made the decision after the hedge fund was hit by about $1bn withdrawals from clients in the last quarter and following losses in 2016. The fund’s investors have called on Tudor to lower its fees because of this.

Industry observers were quick to react to the move. Erik Gordon, a professor of business and law at the University of Michigan, commented, "A half-percent cut in management fees and 2% cut in the carry won’t make a fund that was losing investors attractive enough to keep them. It’s like having a former slugger who now hits .173 offer to take a pay cut from $10m to $9m."

The report added that the hedge fund is planning to launch a new pool for clients with a minimum investment of $50m that will be charged a reduced fee of 2% of assets and 25% of profits. However, Tudor said it would maintain its fees for the firm’s main fund’s oldest share class at 4% of assets and 23% of profits.

......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve

  2. Alts managers sitting on over $2.5tn+ of dry powder[more]

    Laxman Pai, Opalesque Asia: In the current rising interest rate environment, investment activity in the private markets has continued to grow, revealed a study. "With alts managers sitting on over $2.5T+ of dry powder and continuing to enjoy premium valuations and interest rates on a prec

  3. Opalesque Exclusive: Hong Kong manager expects additional tailwind in Asian markets[more]

    B. G., Opalesque Geneva: The Asia equity markets have not been at their best so far this year, with the MSCI Asia index down almost 13% YTD, but many managers remain buoyant about the region, as in

  4. Opalesque Exclusive: Emerging markets persist despite headwinds[more]

    Bailey McCann, Opalesque New York: Emerging markets have been under significant pressure since the start of the year, but there are some nascent trends that suggest that things could be getting better. Emerging markets firm Gramercy Fund Management recently released its third quarter outlook and

  5. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: https://bit.ly/DXCInfo Castle Hall, the Du