Macro hedge funds, which had disastrously overestimated the liquidity in currencies and bonds, returned money to their clients rather than waiting to be asked to do so. Paul Tudor Jones handed back a third of his capital to investors, while Bruce Kovner decided in June 1995 to give back two thirds; both cited the difficulty of maneuvering in and out of markets with too much capital. A month after Kovner’s announcement, Soros wrote a letter to Quantum’s investors, blaming recent disappointments on the same problem of size. Macro investing was now contemptuously dubbed “leveraged directional
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