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Tudor Investment Corporation

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Tudor Investment Corporation
Company typePrivate
IndustryInvestment management
FoundedNovember 1980; 43 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

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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

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  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.
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