Paul Tudor Jones (Tudor Investment Corp)

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“Don’t focus on making money; focus on protecting what you have.”
- Paul Tudor Jones

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Tudor Is Said to Close Oldest Hedge Fund After 30 Years

Billionaire Paul Tudor Jones plans to close his oldest hedge fund after 30 years because of the cost of running the fund relative to its size, according to a person familiar with the matter.

Jones’s $13 billion hedge-fund firm Tudor Investment Corp. will return money to investors in its $300 million Tudor Futures Fund, said the person, who asked not to be identified because the information is private. The fund, run by Jones, 60, posted gains every year since its inception, the person said.

Jones is one of the most successful hedge-fund managers with an annualized gain of 19 percent in his main fund, Tudor BVI Global. He started Greenwich, Connecticut-based Tudor to trade across credit, currencies, stocks and commodities. He has previously returned money to clients. Last year he shut a computer-driven managed-futures fund that had $1.1 billion at its peak following three years of losses.

Jones began his career in 1976, after graduating from University of Virginia with a bachelor’s degree in economics. Through his uncle Billy Dunavant, a cotton merchandiser, he got a job as a trader on the floor of the New York Cotton Exchange. From there, Jones became a commodities broker at E.F. Hutton & Co., trading futures on the cotton exchange for clients before starting Tudor.

CNBC reported the closure earlier today. Patrick Clifford, a spokesman for Tudor, declined to comment.

Source: Bloomberg

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Legendary trader Paul Tudor Jones warns of ‘choppier market’ thanks to the Fed

Source: Bloomberg

http://thecrux.com/billionaire-trader-p ... ket-ahead/

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"Never trade in situations where you don't have control."

- Paul Tudor Jones

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Legends of finance have big bets on the stock market going down

by Julia La Roche

Famous global macro hedge fund manager Paul Tudor Jones, the founder of Tudor Investment Corp, doubled-down on his bet against the stock market, according to his fund’s most recent 13-F filing.

During the second quarter, Tudor Investment bought put options on over 5.95 million shares of the SPDR S&P 500 ETF (SPY). The fund now owns puts on 8.34 million shares of the exchange-traded fund, making it the fund’s largest position, the filing shows.

Puts gain value when the price of an asset falls. Buying these SPY puts gives the fund the right, but not the obligation, to sell shares at a set price. If the S&P 500 or the ETF that it tracks falls, Tudor Investment should profit handsomely as it would effectively be able to buy at a low price and then sell at the put’s price.

Tudor Investment also owns call options on just over 1.43 million shares of the SPDR S&P 500 ETF. The fund added call options on approximately 420,700 more shares during the second quarter, the filing shows. Calls give the fund the right to buy at a certain set price.

Jones, who is famous for nailing the “Black Monday” October 1987 stock market crash, is not alone in his bet against the S&P.

Jones joined George Soros

Hedge funds of a certain size are required to disclose their long stock holdings in filings known as 13-Fs. Of course, the filings only provide a partial picture since they do not show short positions or wagers on commodities and currencies. What’s more is these filings come out 45 days after the end of each quarter, so it’s possible they could have traded in and out of the position.

Still, it does provide a glimpse into where some of the top money managers have been placing money in the stock market.

Source: Yahoo Finance

[winston]

Legends of finance have big bets on the stock market going down

by Julia La Roche

Famous global macro hedge fund manager Paul Tudor Jones, the founder of Tudor Investment Corp, doubled-down on his bet against the stock market, according to his fund’s most recent 13-F filing.

During the second quarter, Tudor Investment bought put options on over 5.95 million shares of the SPDR S&P 500 ETF (SPY). The fund now owns puts on 8.34 million shares of the exchange-traded fund, making it the fund’s largest position, the filing shows.

Puts gain value when the price of an asset falls. Buying these SPY puts gives the fund the right, but not the obligation, to sell shares at a set price. If the S&P 500 or the ETF that it tracks falls, Tudor Investment should profit handsomely as it would effectively be able to buy at a low price and then sell at the put’s price.

Tudor Investment also owns call options on just over 1.43 million shares of the SPDR S&P 500 ETF. The fund added call options on approximately 420,700 more shares during the second quarter, the filing shows. Calls give the fund the right to buy at a certain set price.

Jones, who is famous for nailing the “Black Monday” October 1987 stock market crash, is not alone in his bet against the S&P.

Jones joined George Soros

Hedge funds of a certain size are required to disclose their long stock holdings in filings known as 13-Fs. Of course, the filings only provide a partial picture since they do not show short positions or wagers on commodities and currencies. What’s more is these filings come out 45 days after the end of each quarter, so it’s possible they could have traded in and out of the position.

Still, it does provide a glimpse into where some of the top money managers have been placing money in the stock market.

Source: Yahoo Finance

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Tudor Demands Managers Take More Risk in Hedge Fund Shakeup

by Saijel Kishan

Paul Tudor Jones increases the amount of assets he runs
‘We have to think outside the box,’ Jones says in letter

Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... nd-shakeup

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Paul Tudor Jones says almost every major bust or meltdown (talking about funds) has been from betting against the trend.

He wants to be on the side of the trend, and he simply defines it as the 200-day moving average.

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Paul Tudor Jones says US stocks should ‘terrify’ Yellen

BY KATHERINE BURTON

Years of low interest rates have bloated stock valuations to a level not seen since 2000, right before the Nasdaq tumbled 75% over two-plus years.

Guggenheim Partner’s Scott Minerd said he expected a “significant correction” this summer or early fall.

Philip Yang, a macro manager who has run Willowbridge Associates since 1988, sees a stock plunge of between 20% and 40%, according to people familiar with his thinking.

Even Larry Fink, whose BlackRock Inc oversees US$5.4 trillion mostly betting on rising markets, acknowledged this week that stocks could fall between 5% and 10% if corporate earnings disappoint.

Seth Klarman, who runs the US$30bil Baupost Group, told investors in a letter last week that corporate insiders have been heavy sellers of their company shares.

Margin debt the money clients borrow from their brokers to purchase shares hit a record US$528bil in February,

Rising interest rates in the US mean fewer companies will be able to borrow money to pay dividends and buy back shares.

About 30% of the jump in the S&P 500 between the third quarter of 2009 and the end of last year was fuelled by buybacks, according to data compiled by Bloomberg.

The new danger zone is the half-trillion dollars in risk parity funds. These funds aim to systematically spread risk equally across different asset classes by putting more money in lower volatility securities and less in those whose prices move more dramatically.

Because risk-parity funds have been scooping up equities of late as volatility hit historic lows, some market participants, Jones included, believe they’ll be forced to dump them quickly in a stock tumble, exacerbating any decline.

Source: Bloomberg

http://www.thestar.com.my/business/busi ... fy-yellen/

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Paul Tudor Jones says we are in the 'throes of a burgeoning financial bubble'

"We are in the throes of a burgeoning financial bubble," Jones said. "If I had a choice between holding a U.S. Treasury bond or a hot burning coal in my hand, I would choose the coal."

The investor lambasted what he called an "arbitary" 2 percent inflation target set by the central bank, a goal he views as both outdated and dangerous.

The longtime investor added that since 1970, the very long-term average of inflation is 1.9 percent, but that the average is biased upward by war-time inflation spikes.

"I believe policymakers should have been much more aggressive in tightening policy and rejecting
the fiscal impropriety associated with this most recent tax cut."

by Thomas Franck

Source: CNBC

https://www.cnbc.com/2018/02/06/paul-tu ... ubble.html