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Details on Paul Tudor Jones’ Hedge Fund and Returns

Mr. Jones delivered gains of 125.9 percent after fees in his main hedge fund in 1987 by betting on a big downturn in the United States stock market, then 87.4 percent in 1990 as the market plunged in Japan. As late as 2001-02, he gained 48.1 percent over two years during the sell-off in technology stocks

Mr. Jones can still claim long-term annual returns of close to 19.5 percent in his $10.3 billion flagship fund, Tudor BVI Global, it has been 11 years since he last hit that level

2010 to 2012, he had his worst three-year stretch ever, averaging just 5 percent annually. Last year, gains hit 14.3 percent, investors say, helped by winning bets on Japan’s stock market and against its currency.

“He is a superb risk taker and a genius risk manager. He is really plugged into decision-makers around the world, from finance ministers to central bank officials to think tanks,” said J. Tomilson Hill, head of alternative investing at the Blackstone Group, the world’s largest hedge-fund investor.

Mr. Jones is a so-called macro trader who aims to ride moves in interest rates and currencies based on changes in different nations’ economies. Mr. Jones accounting for only 20 percent of the positions in Tudor BVI, investors say

Tudor lists 35 portfolio managers for four Tudor funds totaling $13.6 billion. [2008] reported a 4.9 percent loss, its only down year.

Heightened competition as the hedge fund universe has expanded to $2.5 trillion from $460 billion in 2000..The new shares cut the management fee to 2.75 percent from 4 percent while increasing the firm’s share of profits to 27 percent from 23 percent. – New York Times

Tudor’s return profile has lagged in recent years probably due to size, more competition, and the opportunity set in a lower volatility low rate environment. However the most interesting thing in the article the admission that he talks to finance ministers and central bankers around the world. Can you imagine what kind of edge that gives a macro fund manager over the years to be able to do that?

Even if the central bankers he talks to never give him any inclination on what they are going to do next, I’m sure Tudor over the years has figured out “how they think” and “how they would react” to certain developments.

Just comes to show you especially in macro land, Tudor and Soros have access most investors simply don’t have.


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