Tudor Investment Hedge Funds Turn In Downbeat July Performance

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.