Born in 1954, Paul Tudor Jones II is the founder of Tudor Investment Corporation, which is one of the world’s leading hedge funds. This fund rose to fame when it made $100 million in shorting stocks during the 1987 market crash.
Tudor is said to have a net worth of $4.3 billion according to Forbes and is the 108th richest American and 345th richest man in the world.
He was born in Memphis, Tennessee. He founded the Robin Hood Foundation that focuses on poverty reduction.
Paul Tudor Jones II started working the trading floors as a clerk before making his way up to become a broker. In 1980, he tried to trade on his own for two and a half years during which he was profitable but he found it boring.
He decided to apply to Harvard Business School but didn’t push through with it, thinking that he won’t learn the necessary trading skill sets in business school.
He was then introduced to commodity broker Eli Tullis who hired Jones and mentored him in trading cotton futures at the New York Stock Exchange.
It was also around this time that he founded the Tudor Investment Corporation. He has also served as a director for the Futures Industry Association.
Jones was featured in the 1987 documentary called TRADER: The Documentary. In this film, he was portrayed as a young man predicting the market crash, but Jones had requested that this film be removed from circulation in 1990.
The Tudor Investment Corporation manages $17.7 billion as of June 2007 and focuses on various strategies such as global macro trading, fundamental equity investing, venture capital, event-driven strategies, and technical trading systems.
His trading style can be described as swing contrarian. He attempts to buy or sell at major turning points, trying to make money at market runs and catching tops and bottoms. In his Market Wizards profile, Tudor shares that he has mental stops and believes that price moves first and fundamentals come second.
One of his earliest wins with the Tudor fund was his prediction of the 1987 Black Monday crash, which led him to triple his money with large short positions. However, he credits this to his second-in-command Peter Borish for mapping a previous market crash in 1929 and noticing similarities to the 1987 market.
In 2013, Tudor was listed as one of Forbes’ 40 highest-earning hedge fund managers. Tudor Investment Corporation charges 4% per annum of assets under management, compared to the standard 2% rate charged by other funds.
His Robin Hood Foundation is a philanthropic organization backed mainly by hedge fund operators. He has also donated money to numerous Democratic and Republican candidates, including Barack Obama.