Tudor Investment Corporation is an American
investment firm
An investment company is a financial institution principally engaged in holding, managing and investing securities. These companies in the United States are regulated by the U.S. Securities and Exchange Commission and must be registered under the ...
based in
Stamford, Connecticut. The firm invests in both
public and
private markets globally.
Background
In 1980,
Paul Tudor Jones founded the Tudor Investment Corporation.
Commodities Corporation 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
A stock market crash is a sudden dramatic decline of stock prices across a major cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are driven by panic selling and underlying economic factors. They often f ...
.
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 indexe ...
plunged 22% on that day while the firm from
short 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 totalling $800,000, the second-largest ever levied at the time for a non-fraud case, for violating the
uptick rule, part of the
Securities Exchange Act of 1934 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'' 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, to uphold or maintain it. It 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.
References
External links
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Companies based in Stamford, Connecticut
Financial services companies established in 1980
Hedge fund firms in Connecticut
Investment management companies of the United States