What Does Hedge Fund "Failure" Look Like?

As well-known hedge fund luminary Paul Tudor Jones closes the doors its Tudor-Tensor fund, Attain Capital notes the issue isn’t so much performance as it is asset raising and investors piling in at the top and getting out at the bottom.

Performance not bad as fund exits

Since its inception in 2005, the Tudor-Tensor managed futures fund has generated 41.86% for investors – handily beating the benchmark Newedge CTA index, bonds, and the worldwide stocks, but falling slightly behind hedge funds and US stock returns over the same period.

What Attain points out in their article, “What a Hedge Fund Failure Looks Like,” is the failure of Tudor-Tensor was more about the often...