Paul Tudor Jones II: The philanthropist technical analyst

  • by Amir El Araby
  • October 23, 2018, 10:20 AM
  • 1795 Views
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Paul Tudor Jones II was born on September 28, 1954 in Memphis, Tennessee. He graduated from Presbyterian Day School, an all-boys elementary school, before attending Memphis University School for high school. Later, Jones has joined the University of Virginia, earning an undergraduate degree in economics in 1976 and got a job working for the cotton speculator Eli Tullis, who mentored him in trading cotton futures at the New York Cotton Exchange.

In 1976, he started working on the trading floors as a clerk and then became a broker for E.F. Hutton. In 1980, Jones founded Tudor Investment Corporation which is today a leading asset management firm headquartered in Greenwich, Connecticut.

In 1983, Jones began the hedge fund Tudor Investment Corp with $300,000 under management. At the end of 2012, the fund was estimated to be managing $12 billion and had achieved an average annual return of 24%.

His fame came from predicting the 1987 stock market crash from which he pulled a 200% return or roughly $100 million.

In March 2012, Jones ranked as number 330 on the list of the world’s wealthiest people. In March 2013, he was ranked as the 108th richest American and 376th richest in the world with a net worth of $3.6B according to Forbes magazine.

He attributes his success to a deep thirst for knowledge and strong risk management.  Jones is a swing trader, trend follower and contrarian investor who also uses Elliott Wave principles, while most of his profits have been made picking the tops and bottoms of the market.

He believes that a good trader is someone who can deliver an annual return of two-three times of his largest draw down. He always tries to identify opportunities where the risk/reward ratio is strongly skewed in his favor and does not use a lot of leverage.

Jones has rewritten the rules of philanthropy by making nonprofits answer to their donors. Instead of giving money to financially unaccountable charities, the hedge-fund manager created the Robin Hood Foundation, which “invests” fully 100 percent of donors’ dollars in 230 anti-poverty groups that meet strict performance criteria and can demonstrate success (with help from Robin Hood’s consultants). His results-driven approach has attracted a celebrity – and Wall Street – heavy donor list that’s coughed up more than $400 million since 1988. A team led by David Saltzman actually distributes the money, making or breaking the ability of these groups to survive.

“Don’t ever feel that you are very good.  The second you do, you are dead… my guiding philosophy is playing great defense.  If you make a good trade, don’t think it is because you have some uncanny foresight.  Always maintain your sense of confidence, but keep it in check”

– Paul Tudor Jones II –

 

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