Who is Paul Tudor Jones? History of the trader and investor
Table of Contents
Paul Tudor Jones is an American billionaire who made his riches managing his hedge fund. Further, he is also an environmental conservationist and a philanthropist who established his name through the financial services market. This man found his hedge fund named Tudor Investment Corporation.
His name came to the limelight when despite Black Monday being the worst-performing day in the stock market, he predicted and survived the crash while thriving with a 62% return secured for that month. Later in his life, he set up the Robin Hood Foundation with the mission of reducing poverty.
About Paul Tudor Jones
Date of birth: | 28.09.1954 |
Wealth: | 7.5 billion USD |
Strategies: | – placing macro trades – Paul considers not investing in tech companies in 1990 – stop-loss strategy for the security price and time – putting a stop to all trading activities – do not feed your ego and self-confidence – emotionally involving yourself in the trade will not yield any successful results |
Website: | |
Interesting facts: | – initiated Tudor Investment Corporation in 1980 – early experiences and polishings – trading cotton futures – has co-founded the Robin Hood Foundation in 1988 – Paul’s family owned and operated The Daily News since 1886 – received acceptance in 1980 from the Harvard Business School |
Let’s dive into more than interesting and special facts about one of the richest hedge fund managers of the past decade:
- Paul Tudor Jones is popular for placing bets on macro trades, particularly interest rates, and currencies
- He initiated Tudor Investment Corporation in 1980, which handles assets of $13 billion
- Jones began his journey at his father’s small paper establishment, the Memphis Daily News. He would write under the alias Paul Eagle throughout secondary school and college
- The early experiences and polishings happened in trading cotton futures. He worked under the guidance of a famous cotton trader Eli Tullis
- Paul Tudor Jones has co-founded the Robin Hood Foundation in 1988 with poverty reduction as the mission in mind in New York City
Good to know!
Jones is popular for placing macro trades, specifically placing bets on rates of interest and currencies. As a philanthropist, his activities involve signing up with the Giving Pledge to donate most of his wealth to a charity.
If counting any regrets, Paul considers not investing in tech companies in 1990 and his friendship with the disgraced entertainment person Harvey Weinstein as major remorses.
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(5 / 5)Biography of Paul Tudor Jones
Birth Details: | Birth Name: Paul Tudor Jones II Date of Birth: September 28, 1954 Place: Memphis, Tennessee, USA |
Qualification: | Bachelor of Arts/ Science from the University of Virginia |
Occupation: | Hedge Fund Manager |
Known For: | Black Monday Prediction, Co-founder of Robin Hood Foundation |
Title: | CEO at Tudor Investment Corporation |
Marital Status: | Married to Sonia Jones since 1988 |
Children: | 4 |
Citizenship: | United States of America |
Early life, education, and experiences
Memphis, Tennessee, was the birthplace of Paul T. Jones II to his father, John Paul Jack Jones. His father practiced transportation law. His family owned and operated The Daily News since 1886, and Jack Jones was the publisher there for 34 years.
Good to know!
After the University of Virginia handed him his bachelor’s degree in economics, Jones received acceptance in 1980 from the Harvard Business School. However, he decided not to attend Harvard.
Career
- 1976: Paul Tudor Jones got a kickstart to the trading journey in 1976 after graduation with an introduction from his cousin to Eli Tullis, a commodity broker. Eli Tullis was a well-known cotton trader who taught Jones about cotton futures trading at the New York Cotton Exchange
- 1976- 1980: Jones became a commodities broker at E.F. Hutton and Company, just 24
- 1980- present: In 1980, Jones established his firm that manages assets, named Tudor Investment Corporation. He used his cotton trading experience to deal with the macro trades, like stock-index contracts, and currency futures
Good to know!
Their investment corporation earned higher flexibility and liquidity with Jones’ chairmanship of the NYCE’s Finex subsidiary in the 90s.
In 1990, Tudor Jones benefitted from the Japanese equity bubble bursting by earning a return of 87.4 percent through shorting of the market. In 91, Jones shut down the Tudor Select Fund, a fund regarding futures trading, and gave back the capital to the investors.
In 1994, Tudor Jones had to settle their liabilities against SEC, paying a fine of $800,000 (second highest at the time) while not denying or admitting to the allegations. In 2020, he saw the scope brought by Bitcoin and allocated 1-2% of his wealth to the digital currency.
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The net worth of Paul Tudor Jones
The current real-time net worth of Paul Tudor Jones stands at $7.5 billion, according to Forbes on January 7, 2023.
Trading and investment strategies
Paul Tudor Jones emphasizes risk control and focuses on losing rather than gaining money. He uses a stop-loss strategy for the security price and time. An instance to illustrate this is as follows- When he goes long on a certain stock, which is down by 10%, he steps out. If the stock doesn’t move per his expectations, even after him waiting for a specific time frame, he will move out again.
Another rule he follows includes putting a stop to all trading activities. This rule is followed when the trading activities reach double negative digits in a month. With the help of this rule, he has foreseen several turning points in the market.
Good to know!
What can you learn from Paul Tudor Jones?
Some essential learnings from Paul Jones include:
- Do not feed your ego and self-confidence to the point it oversteps the boundary. Jones’s experiences taught him that he could make the most out of a deal when he applied complete data and knowledge to his trading
- His strength that everybody should apply is to not dwell on past mistakes but look into how you can better them in the future. Emotionally involving yourself in the trade will not yield any successful results. So, do not care about the mistake you made 3 minutes ago and devise the next strategy
Good to know!
- An investor should focus on capital preservation over profit maximization. It involves finding and creating asymmetry through numerous approaches
- Play defense and not offense. It involves knowing the maximum risk a specific position brings to the market and how a good trader can deflect it
- Instead of getting frightened by turning points, delve into its mechanism to make higher gains. It involves an in-depth understanding and knowledge of the topic
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FAQs – frequently asked questions about Paul Tudor Jones
Does Paul Tudor Jones use technical analysis?
Paul Tudor Jones is famous for using technical analysis and trend-following strategies to ensure successful trades. He is also recognized for identifying and capitalizing on market opportunities. Further, he follows a few principles he gained through experience on which he bases his trading decisions.
What is Paul Tudor Jones popular for?
Paul T. Jones is well-known for macro trading. He usually bets on rates of interest and currencies. This Hedge Fund Manager founded Tudor Investment Corporation in 1980, which currently handles $13 billion in assets. He came into the limelight when he predicted Black Monday and tripled his gains while the stock market was crashing.
What philanthropic activities has Paul Tudor Jones been a part of?
Some notable philanthropic activities that Paul Tudor jones has been a part of include:
● Donating around $44 million to his graduation college, the University of Virginia
● Co-founding the Robin Hood Foundation, backed by numerous hedge fund operators, aimed at alleviating poverty
● Set up a non-profit named ‘Just Capital’ to inform Americans about companies that are ‘just’ through data analysis.
What is Paul Tudor Jones’s strategy?
Paul Tudor Jones follows a global macro strategy while trading forex.
Last Updated on February 26, 2023 by Yuriy Kunets
