Tudor Investment Corporation is an American investment firm based in

Stamford, Connecticut Stamford () is a city in the U.S. state of Connecticut, outside of Manhattan. It is Connecticut's second-most populous city, behind Bridgeport. With a population of 135,470, Stamford passed Hartford and New Haven in population as of the 2020 ...

. The firm invests in both

public In public relations and communication science, publics are groups of individual people, and the public (a.k.a. the general public) is the totality of such groupings. This is a different concept to the sociological concept of the ''Öffentlichkei ...

and

private Private or privates may refer to: Music * " In Private", by Dusty Springfield from the 1990 album ''Reputation'' * Private (band), a Denmark-based band * "Private" (Ryōko Hirosue song), from the 1999 album ''Private'', written and also recorde ...

markets globally.

Background

In 1980,

Paul Tudor Jones Paul Tudor Jones II (born September 28, 1954) is an American billionaire hedge fund manager, conservationist and philanthropist. In 1980, he founded his hedge fund, Tudor Investment Corporation, an asset management firm headquartered in Stamford, ...

founded the Tudor Investment Corporation.

Commodities Corporation Commodities Corporation (frequently referred to as "CC") was a financial services company, based in Princeton, New Jersey that traded actively across various commodities. The firm was noted as one of the leading commodity and futures trading firm ...

was one of the first clients to invest into the firm where it provided $30,000 to manage. On the day of

Black Monday Black Monday refers to specific Mondays when undesirable or turbulent events have occurred. It has been used to designate massacres, military battles, and stock market crashes. Historic events *1209, Dublin – when a group of 500 recently arriv ...

, October 19, 1987, Jones accurately predicted there would be a stock market crash. The

Dow Jones Industrial Average The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity inde ...

plunged 22% on that day while the firm from

short Short may refer to: Places * Short (crater), a lunar impact crater on the near side of the Moon * Short, Mississippi, an unincorporated community * Short, Oklahoma, a census-designated place People * Short (surname) * List of people known as ...

positions earned a 62% gain for the month of October and 200% gain for the year of 1987. On February 1990, Jones bought put options for the Japanese stock market. When the market plunged, the firm had a return of 87.4% for that year. In 1996 the firm agreed to pay fines to the

U.S. Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...

totalling $800,000, the second-largest ever levied at the time for a non-fraud case, for violating the

uptick rule The uptick rule is a trading restriction that states that short selling a stock is allowed only on an uptick. For the rule to be satisfied, the short must be either at a price above the last traded price of the security, or at the last traded pric ...

, part of the

Securities Exchange Act of 1934 The Securities Exchange Act of 1934 (also called the Exchange Act, '34 Act, or 1934 Act) (, codified at et seq.) is a law governing the secondary trading of securities (stocks, bonds, and debentures) in the United States of America. A landma ...

that prohibits the sale of a borrowed stock while the stock is declining. The trades in question were performed on March 15 and 16, 1994. The SEC charged that the trades made had pushed the Dow Jones Industrial Average down 16 points in a single day. In 2014, ''

The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...

'' 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. From 2010 to 2012, the firm returned just 5% annually. In 2016, the firm laid off 15% of its staff due to poor returns and investor redemptions. In that year investors pulled out over $1 billion from the firm. The firm also had to cut fees. In 2022, Jones stated that the firm will be increasing its trading in

cryptocurrencies A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank A bank is a financial i ...

as a way to protect against rising inflation. The firm is headquartered in Connecticut with additional offices in New York, Palm Beach, London, Singapore and

Sydney Sydney ( ) is the capital city of the state of New South Wales, and the most populous city in both Australia and Oceania. Located on Australia's east coast, the metropolis surrounds Sydney Harbour and extends about towards the Blue Mountain ...

References

External links

* {{authority control Companies based in Stamford, Connecticut Financial services companies established in 1980 Hedge fund firms in Connecticut Investment management companies of the United States