(Reuters) – Hedge-fund pioneer Paul Tudor Jones and veteran stock picker James Pallotta are splitting after a 15-year old partnership, in a move that could affect their $18 billion fund empire, according to media reports on Thursday.
The reports, citing an Aug 6 letter sent by Tudor Investment Corp to investors, said Pallotta will form his own investment firm in 2009.
Pallotta's $5 billion Raptor Global Fund will be spun off from Tudor, and at his new firm, Pallotta will also continue to manage his Altar Rock funds as well as money from Tudor's main BVI Global Fund Ltd, the reports said.
Pallotta's new firm could expand into private equity, the Wall Street Journal said, citing the Tudor letter.
A split between Pallotta and Jones, the veteran trader who started Tudor, would mark the end of one of the most successful and well-known hedge-fund duos in history, the Journal said.
Tudor clients were told in the letter to expect more information “on Jim's new business and on operational aspects of the transition as decisions are made and as more details are available,” the Journal said.
The letter was signed by Jones, Pallotta and Mark Dalton, who is Tudor's president, the reports said.
It was unclear what Pallotta's new firm will be called.
Representatives at Tudor could not be immediately reached for comments. (Reporting by Tenzin Pema in Bangalore)