Tudor Investment Corporation

Tudor Investment Corporation
Company typePrivate
IndustryInvestment management
FoundedNovember 1980; 44 years ago (November 1980)
FounderPaul Tudor Jones
HeadquartersStamford, Connecticut, U.S.
ProductsHedge funds
Alternative investments
Venture Capital
AUMUS$12 billion (2022)[1]
Number of employees
314 (2022)
Websitetudor.com
Footnotes / references
[2]

Tudor Investment Corporation is an American investment firm based in Stamford, Connecticut. The firm invests in both public and private markets globally.

Background

In 1980, Paul Tudor Jones founded the Tudor Investment Corporation.[3][4][5] Commodities Corporation was one of the first clients to invest into the firm where it provided $30,000 to manage.[6]

On the day of Black Monday, October 19, 1987, Jones accurately predicted there would be a stock market crash.[3][5] The Dow Jones Industrial Average plunged 22% on that day while the firm from short positions earned a 62% gain for the month of October and 200% gain for the year of 1987.[7][8][9]

In February 1990, Jones bought put options for the Japanese stock market.[5][9] When the market plunged, the firm had a return of 87.4% for that year.[5][9][10]

In 1996 the firm agreed to pay fines to the U.S. Securities and Exchange Commission totalling $800,000, the second-largest ever levied at the time for a non-fraud case, for violating the uptick rule, part of the Securities Exchange Act of 1934 that prohibits the sale of a borrowed stock while the stock is declining.[11] The trades in question were performed on March 15 and 16, 1994.[11] The SEC charged that the trades made had pushed the Dow Jones Industrial Average down 16 points in a single day.[11]

In 2014, The New York Times noted that returns for the firm's clients had "dimmed" over the decade and that the returns could not match the same level as before.[10] From 2010 to 2012, the firm returned just 5% annually.[10]

In 2016, the firm laid off 15% of its staff due to poor returns and investor redemptions.[12] In that year investors pulled out over $1 billion from the firm.[13] The firm also had to cut fees.[14]

In 2022, Jones stated that the firm will be increasing its trading in cryptocurrencies as a way to protect against rising inflation.[15]

The firm is headquartered in Connecticut with additional offices in New York, Palm Beach, London, Singapore and Sydney.[2]

References

  1. ^ "Paul Tudor Jones Says Investors Are in Tough Spot with Fed in New Era". Bloomberg. May 3, 2022.
  2. ^ a b "Form ADV" (PDF). SEC. Retrieved December 18, 2022.
  3. ^ a b "Tudor Investment Corp". Institutional Investor. Retrieved December 18, 2022.
  4. ^ "Billionaire Paul Tudor Jones to Staff: Learn to Write or I'll Rip Up Your Memo". Bloomberg.com. October 23, 2015. Retrieved December 18, 2022.
  5. ^ a b c d "Paul Tudor Jones: The Global Macro Trader". finance.yahoo.com. Retrieved December 18, 2022.
  6. ^ "WHAT BECOMES A LEGEND? | Institutional Investor". August 19, 2020. Archived from the original on August 19, 2020. Retrieved December 18, 2022.
  7. ^ "Paul Jones II, The World's Richest People - Forbes.com". Forbes. April 1, 2007. Archived from the original on April 1, 2007. Retrieved December 18, 2022.
  8. ^ "Wall Street Revisits the Crash of '87". Bloomberg.com. October 16, 2017. Retrieved December 18, 2022.
  9. ^ a b c "Paul Tudor Jones: Don't focus on making money, but protecting what you have". www.morningstar.in. Retrieved December 18, 2022.
  10. ^ a b c "After a Dazzling Early Career, a Star Trader Settles Down - The New York Times". October 2, 2019. Archived from the original on October 2, 2019. Retrieved December 18, 2022.
  11. ^ a b c Strom, Stephanie (December 31, 2019). "Tudor Investment Agrees to S.E.C. Fines - The New York Times". The New York Times. Archived from the original on December 31, 2019. Retrieved December 18, 2022.
  12. ^ "Hedge fund Tudor Investment lays off 15 percent of staff: source". Reuters. August 16, 2016. Retrieved December 18, 2022.
  13. ^ Marino, Jon. "Tudor hedge fund sees $1B outflows". CNBC. Retrieved December 18, 2022.
  14. ^ Childs, Mary (May 24, 2016). "Tudor Investment cuts fees amid weak performance". www.ft.com. Retrieved December 18, 2022.
  15. ^ Zuckerman, Gregory. "Mainstream Hedge Funds Pour Billions of Dollars Into Crypto". WSJ. Retrieved December 18, 2022.