The recent retirements of some of his would-be rivals might have convinced James Pallotta it’s time to get back in the game.Pallotta, the founder of the now-folded $12 billion hedge fund, Raptor Global, made his career trading with Paul Tudor Jones at Tudor, and then he crumbled.
Pallotta posted average annual returns of 19.2 per cent in the 15 years he worked for the billionaire Paul Tudor Jones and five years before that at Essex Investment Management.
Raptor was spun out of Tudor Investments in late 2008, after the fund lost 20 per cent. Turning in a flat performance in the first few months of 2009, Mr. Pallotta shut the fund n that June, telling investors in a letter that he had doubts about “the sustainability of certain aspects of the industry’s structure and short-term focus.”
But now he’s back, and preparing to launch a new fund, Raptor Evolution, the name to signify his moving on from a rocky past but not from the good times.
Mr. Pallotta is going back to Square 1, recreating the conditions that he had at the start of his career, said a person with knowledge of the fund.
He’s gotten some new investors, the person tells the NYTimes, and he’s won some back from his past days.
The investors who are back for a second run get an added bonus – no fees until he’s made them back whatever losses he cost them a few years ago.