Billionaire Paul Tudor Jones plans to close his oldest hedge fund after 30 years because of the cost of running the fund relative to its size, according to a person familiar with the matter.
Jones’s $13 billion hedge-fund firm Tudor Investment Corp. will return money to investors in its $300 million Tudor Futures Fund, said the person, who asked not to be identified because the information is private. The fund, run by Jones, 60, posted gains every year since its inception, the person said.
Jones is one of the most successful hedge-fund managers with an annualized gain of 19 percent in his main fund, Tudor BVI Global. He started Greenwich, Connecticut-based Tudor to trade across credit, currencies, stocks and commodities. He has previously returned money to clients. Last year he shut a computer-driven managed-futures fund that had $1.1 billion at its peak following three years of losses.
Jones began his career in 1976, after graduating from University of Virginia with a bachelor’s degree in economics. Through his uncle Billy Dunavant, a cotton merchandiser, he got a job as a trader on the floor of the New York Cotton Exchange. From there, Jones became a commodities broker at E.F. Hutton & Co., trading futures on the cotton exchange for clients before starting Tudor.
CNBC reported the closure earlier today. Patrick Clifford, a spokesman for Tudor, declined to comment.