Tudor Investment Corp. plans to split its $10bn BVI Global Fund into two separate funds and has suspended withdrawals until the restructuring is complete.In a letter sent to clients on Friday, Paul Tudor Jones said investors were trying to redeem 14 per cent of the Tudor BVI fund at the end of the year. This would have left the remaining investors holding too large a proportion of illiquid assets, particularly corporate credit in emerging markets, the letter said.
??I recognise that a restructuring is an unwelcome, but I believe necessary, step against the backdrop of Tudor BVI??s 22-year history of unbroken profitable years,? Mr Jones wrote. He suggested that this step was for the benefit of all investors.
The Tudor BVI fund was down 5 per cent to the end of November.
Illiquid assets will be split from the BVI fund into a new fund called Legacy, holding the fund??s $3.1bn of corporate credits in eastern Europe, Asia and Latin America, plus private equity and hedge fund investments.
Mr Jones said withdrawals were likely to be allowed again at the end of March, after illiquid assets had been split out.
