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发帖数: 100 | 1 http://www.zerohedge.com/news/2016-08-16/paul-tudor-jones-terminates-15-workforce-after-surge-withdrawals
In the latest indication of just how difficult life, and generating profits,
has become at hedge funds in the "new normal", Bloomberg reports that
billionaire Paul Tudor Jones dismissed about 15% of the workforce at his
Tudor Investment Corp, after losses and investor withdrawals at the $11
billion hedge fund. Tudor Investment earlier Tuesday informed the affected
employees, which include positions ranging from money managers to support
staff. Tudor employed 409 people, about half in investing roles, according
to a March regulatory filing.
“Amid a changing operating environment, we have made strategic adjustments
to our firm’s staffing,” the firm said in a statement that didn’t specify
how many jobs are being cut. “These difficult changes were made after
conducting a deep and broad review of our business and are meant to
optimally size the firm for future success. We are committed to treating our
departing employees with care and support and appreciate their many
contributions to Tudor."
Tudor is not alone. Earlier, the WSJ reported that Brevan Howard, one of the
world’s largest hedge fund firms, experienced investor withdrawals of more
than $3 billion from its flagship fund in the first half of this year.
The Brevan Howard Master Fund was one of the star performers during the
credit crisis but is now in its third straight calendar year of losses.
It has struggled recently, as bond markets have proved tough to predict.
The withdrawals in the first six months of this year are according to
letters to investors and calculations by The Wall Street Journal. The fund
now has $15.7 billion under management, the letters said.
The withdrawals at Brevan, which is headed by Switzerland-based billionaire
Alan Howard, mean the firm’s assets have now more than halved in the past
two years, from around $42 billion to $19.4 billion. It has shut commodities
and emerging markets funds in recent years, and also spun out its credit
funds unit.
According to HFR, hedge funds have already experienced more than $23 billion
of net withdrawals in the first half of this year, a number which is only
set to increase. As Bloomberg noted yesterday, following the lead of
pensions, some U.S. endowments and foundations are souring on hedge funds.
Hedge fund fees and lagging performance are cause for concern for nonprofit
investors, who are reducing their allocation, according to a survey
published Monday by NEPC, a Boston-based consulting firm with 118 endowment
and foundation clients with assets of $57 billion.
More than a quarter of 59 respondents said their investment committees
reduced or were considering lowering their allocations to hedge funds. Of
those that made changes, almost half said they put that money into public
equities. NEPC conducted the survey in July, polling business officers of
universities, foundations and other nonprofits on their market outlook and
asset allocation. About one-third of the respondents were universities.
Ultimately, the reason why so much money is being redeemed is simple: after
being cash cows during the crisis and in the first years of the decade,
hedge funds no longer generate alpha as we showed last week in a report
according to which the hedge fund industry has failed to generate alpha
since 2011, despite collecting 2% management fees on some $3 trillion in
assets under management.
Finally, Mutual Funds are likewise impacted. As Barclays calculated
yesterday, there have been some $196 billion in redemptions from the MF
space YTD, with the pace of redemptions accelerating since April.
Absent a reversal in the key factors moving the "market", namely central
banks led by clueless economists, we anticipate this period of alpha drought
will continue indefinitely. More importantly, it is only a matter of time
before the redemption wave forces hedge and mutual funds to begin selling
some of their more liquid assets to provide the funding their LPs demand. |
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