Tudor Attracts as Macro Rises

Chidem Kurdas

Two years ago distressed securities investing looked promising. No longer. Investors are moving to other strategies, in particular global macro. But they don’t want new macro managers—they want well-established names that have been around for decades, like Paul Tudor Jones. 

In the last two decades global macro was eclipsed by equity funds in investor portfolios. By contrast, current economic uncertainty is seen as favoring macro, which is versatile, ranging widely across markets. Thus Mr. Jones’ flagship fund, Tudor BVI Global, invests in all asset classes, from currencies and commodities to bonds and stocks.

Tudor BVI Global had around $9.4 billion in total assets at the beginning of this year. It does not have much capacity for deploying additional money. Tudor may launch a new global macro fund, but Mr. Jones won’t be the manager, according to a recent report from HedgeFundAlert. Whether clients will like a new Tudor fund managed by others is not clear.

The firm also has other investment vehicles. It diversified strategies over the years but global macro remained its main focus.

While long/short equity strategies still loom large in institutional portfolios, a number of  investors recently made allocations to macro, a strategy bucket that usually includes commodity trading advisors like Willem Kooyker’s Blenheim Capital Management.

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