Tudor Investment Corporation

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

Tudor Investment Corporation
TypePrivate
IndustryInvestment management
FoundedNovember 1980 (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]

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]

On 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. 3 May 2022.
  2. "Form ADV" (PDF). SEC. Retrieved 18 December 2022.
  3. "Tudor Investment Corp". Institutional Investor. Retrieved 2022-12-18.
  4. "Billionaire Paul Tudor Jones to Staff: Learn to Write or I'll Rip Up Your Memo". Bloomberg.com. 2015-10-23. Retrieved 2022-12-18.
  5. "Paul Tudor Jones: The Global Macro Trader". finance.yahoo.com. Retrieved 2022-12-18.
  6. "WHAT BECOMES A LEGEND? | Institutional Investor". 2020-08-19. Archived from the original on 2020-08-19. Retrieved 2022-12-18.
  7. "Paul Jones II, The World's Richest People - Forbes.com". Forbes. 2007-04-01. Archived from the original on 2007-04-01. Retrieved 2022-12-18.
  8. "Wall Street Revisits the Crash of '87". Bloomberg.com. 2017-10-16. Retrieved 2022-12-18.
  9. "Paul Tudor Jones: Don't focus on making money, but protecting what you have". www.morningstar.in. Retrieved 2022-12-18.
  10. "After a Dazzling Early Career, a Star Trader Settles Down - The New York Times". 2019-10-02. Archived from the original on 2019-10-02. Retrieved 2022-12-18.
  11. Strom, Stephanie (2019-12-31). "Tudor Investment Agrees to S.E.C. Fines - The New York Times". The New York Times. Archived from the original on 2019-12-31. Retrieved 2022-12-18.
  12. "Hedge fund Tudor Investment lays off 15 percent of staff: source". Reuters. 2016-08-16. Retrieved 2022-12-18.
  13. Marino, Jon. "Tudor hedge fund sees $1B outflows". CNBC. Retrieved 2022-12-18.
  14. Childs, Mary (24 May 2016). "Tudor Investment cuts fees amid weak performance". www.ft.com. Retrieved 2022-12-18.
  15. Zuckerman, Gregory. "Mainstream Hedge Funds Pour Billions of Dollars Into Crypto". WSJ. Retrieved 2022-12-18.
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