Tudor Investment Corporation

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Tudor Investment Corporation
Tudorlogo.jpg
Founded 1980
Headquarters Greenwich, CT
Key People Founder Paul Tudor Jones II
Products Hedge funds
Website http://www.tudorfunds.com

Tudor Investment Corporation is a large manager of hedge funds investing in equities, derivatives and forex across global markets. The company had a rough 2007 but also joined the 'carbon rush' by investing in several emissions-reduction projects.

History

Tudor Investment Corporation, the main business in the Tudor Group, manages hedge funds and invests in stocks, derivatives, cash and venture capital markets across the globe. As of 2016, Tudor Investment Corp. managed around $11 billion.[1]

In 1996 Tudor Investment Corp. agreed to pay fines to the 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' imposed after the 1987 market crash on "Black Monday."[2]The SEC charged that mistaken trades made by Tudor in 1994 had pushed the Dow Jones Industrial Average (DJIA) down 16 points in a single day.

In late 2007, Tudor helped launch the Green Exchange to trade a range of environmental derivatives contracts like futures, options and swaps on European carbon allowances, Kyoto Protocol-based carbon credits and voluntary-market carbon credits.[3] The venture intends establishing its own CFTC-regulated exchange in early 2009.

Beginning in 2008, the return rate of the company began to decline drastically, with the Raptor fund, one of its signature funds, losing 8.5% in 2008. Between 1987 and 2007, the average returns of the firm's macro fund stood at about 26%, compared with 5.3% between 2008 and 2016. This led to a drastic increase in redemptions from the fund, with the total amount of money in the fund dropping from just under $20 billion in 2007 to about $11 billion in 2016.[4]

Key People

References

  1. Tudor Investment Corp. StockPicker.com.
  2. Tudor Investment Agrees to SEC Fines. New York Times.
  3. Tudor Investment Corporation. BusinessWeek.
  4. Tudor Investors Pull More Than $1 Billion From Raptor. Bloomberg.
  5. Paul Tudor Jones Addresses Industry Growth. MAR.