Wednesday, August 24, 2011

Profile: Paul Tudor Jones--"High Fees, High Life"

Mr. Jones is one of the best at what he does, global macro. Links below the jump.
From Deal Journal:

Billionaire hedge fund manager Paul Tudor Jones is cutting his fees from really unusually high, to merely unusually high, according to a story from Deal Journal colleague Greg Zuckerman.
Deal Journal is taking a closer look at the 56-year-old hedge fund veteran, whose Tudor Investment Corp., has $11 billion in assets under management, according to LionShares.

How Rich Is He? Jones has a net worth of $3.3 billion, according to Forbes, which lists him as the 336th-richest person in the world. Jones reportedly took home $440 million for himself last year, according to Absolute Return+Alpha.

Background: A Memphis native, Jones graduated with a B.A. and B.S. from the University of Virginia. He started out in the finance business by trading cotton. The trade that elevated him into the league of chattering classes came on Black Monday in 1987, when Jones made an estimated $100 million even as the Dow plunged 22%.

Biggest Holdings: Jones is a “macro” investor who spreads investments across global markets. The five-biggest equity components of Tudor Investment Corp. are an ETF tied to emerging markets ($67.15 million market value as of June 30, according to LionShares ), Microsoft ($28 million), Google ($27 million), an ETF tied to Chinese stocks ($19.1 million) and real-estate investment trust ProLogis Inc. ($14.5 million). Our colleague Zuckerman reports Jones has held firm in this month’s wild market ride thanks to a slug of gold-related investments and bearish positions in stocks....MORE
The WSJ story that Deal Journal links to has some performance facts:
"...But Mr. Jones, a "macro"-oriented investor who makes bets in various global markets, is navigating the recent market downturn better than most competitors. He has managed to score gains of about 3.2% in the flagship fund this month through Aug. 19, according to investors, and the fund is up about 1.1% so far this year.

The firm's $1.4 billion Tudor Tensor fund, which follows computer models, lost 4.4% so far this year through Aug. 19, investors say. This fund isn't changing its fees, which are in line with the rest of the industry.
By contrast, the Standard & Poor's 500 dropped 13% in August, through Aug. 19, and fell nearly 11% for the year through that date...."
Some of our previous posts on Tudor:

May 22, 2009 
Paul Tudor Jones Interview at Institutional Investor

July 21, 2008 
Paul Tudor Jones on Oil
Mr. Jones says the historic spike in oil is a direct result of speculation by pensions and endowments using "Long only" index products. These products were mainly peddled by Goldman salesmen, we have dozens of links on the subject.

September 29, 2010 
"Tudor Sells Completely Out of Renewable Energy Holdings (LON: REH)"
A superb call.

September 1, 2009 
Paul Tudor Jones: "Goldman Sachs Wrong on Economic Recovery"
Even when he's wrong he's worth reading

October 29, 2010 
Reversing his position from the post immediately above.

November 12, 2010 
Paul Tudor Jones Questions Fed’s Bond Buying

Feb. 25, 2011 
"Paul Tudor Jones On The ‘Undervaluation Of The Chinese RMB And The Subsequent Loss Of Competitiveness In The US Manufacturing Sector’"