10 Things You Didn’t Know About Paul Tudor Jones, II

Introduction

Paul Tudor Jones II, a renowned name in the world of finance, is one of the most successful hedge fund managers on the globe today. Known for his trading company, Tudor Investment Corporation, Jones is not just a finance guru but also an ardent philanthropist. Despite his popularity, there are certain aspects of his life that remain relatively unfamiliar to the public — examined here are ten such interesting facets of his personality and accomplishments.

1. He Stalled His Academic Pursuits

Despite eventually becoming a financial titan, Jones initially did not envision a future in finance. He considered himself somewhat aimless and drifted between different career choices. He even dropped out of the University of Virginia during his senior year to travel. Later, he realized the importance of education and returned to finish his degree in economics.

In 1976, Paul Tudor Jones earned his bachelor’s degree from the University of Virginia. Notably, he was a welterweight boxing champion during his university days – a testament to his diverse talents and potential for success in numerous areas.

2. His Early Professional Life Was Not in Trading

Before starting his venture into trading commodities, Jones served in the management of E. F. Hutton & Co., a well-known brokerage firm. His job was far off the trading floor, dealing with corporate accounts. He then began trading cotton for accounts at the New York Cotton Exchange, setting the stage for his future success in the world of hedge funds.

Contrary to popular belief, Jones did not immediately start making fortunes from his investment ventures. His success didn’t come overnight; it took multiple successes and failures to carve out the path he walks today.

3. He Predicted the 1987 Stock Market Crash

One of the most commendable feats in Jones’ career was his prediction of the stock market crash in 1987, also known as the Black Monday crash. His early warning to investors and apt management of his clients’ portfolios indeed saved many people from enormous financial losses.

Jones’ foresight in predicting the market crash was so accurate that he nearly tripled his fund’s assets in that single year. This success story catapulted him to the forefront of the finance world, truly establishing him as a force to be reckoned with.

4. He Founded Tudor Investment Corporation

Tudor Jones II founded Tudor Investment Corporation in 1980. The company initially focused on trading commodities and was highly influenced by the success of commodity trader Richard Dennis, who turned a small sum into millions.

Today, it’s one of the leading asset management firms globally, with an estimated $7 billion under management. The corporation has been instrumental in making Jones one of the wealthiest people in the world.

5. He is An Avid Philanthropist

Jones is not only a prominent figure in the financial industry but also in philanthropy. He has been extensively involved in various charitable causes. Some of the most prominent ones include founding the Robin Hood Foundation, which aims to alleviate poverty in New York City.

The Robin Hood Foundation, since its inception, has given over $3 billion to causes associated with poverty alleviation. Through this foundation, Jones has dramatically affected countless lives, once again reflecting his multidimensional personality.

6. He Co-Founded the Everglades Foundation

It’s not enough to mention Jones’s contributions without recognizing his efforts to conserve the environment. He is a co-founder of the Everglades Foundation, an organization devoted to protecting and restoring one of the world’s most significant and unique ecosystems.

The foundation funds various research, litigation, advocacy, and educational projects related to preserving the Everglades’ natural habitats. The Everglades Foundation demonstrates Jones’ commitment to environmental protection and his desire to make a tangible difference in the world outside of finance.

7. He Produced a Documentary

Apart from his interests in finance and philanthropy, Jones has also dabbled in the cinematic world. He bankrolled and produced a documentary titled “The 11th Hour,” an exploration of the human impact on the global environment and what could be done to change it.

Jones used this platform to raise public awareness about the pressing environmental issues of our time. The documentary reflects Jones’ progressive thinking and his commitment to create a better world for future generations.

8. A Firm Believer in Macro Trading

Jones is a proponent of macro trading, a strategy in which traders bet on economic trends by buying and selling securities, commodities, options, futures, or foreign exchange. This belief is reflected in the trading strategies of Tudor Investment Corporation.

He was greatly influenced by his cousin William Dunavant, a successful cotton trader. Dunavant became Jones’ mentor and his trading strategies, coupled with his own experiences, eventually shaped Jones’ approach to trading.

9. He Coined the ‘Risk Control’ Concept

Jones introduced the concept of ‘risk control’ in hedge fund management. He believes that the key to successful investing lies in careful risk management over chasing profits. His approach to trading emphasizes managing losses and identifying trades that have the potential to yield substantial profits.

His ‘5:1’ rule is widely recognized in trading. Jones insists that every trade he enters should potentially yield a profit at least five times the amount he is willing to lose.

10. He is an Ardent Music Lover

Last but not least, Jones is a music lover. He’s particularly fond of hard rock music from the 1970s and 1980s. His favorite bands include the Rolling Stones and the Grateful Dead, and he has been seen rocking to their tunes on many occasions.

Music plays a significant role in Jones’ life, helping him unwind and relax. Although his hectic career doesn’t leave much free time, he always manages to squeeze in some time for his music.

In conclusion, Paul Tudor Jones II is a multifaceted personality. His incredible journey from being a cotton trader to becoming one of the wealthiest hedge fund managers attests to his unwavering determination and tenacity. Beyond his financial success, Jones is a philanthropist, environmentalist, film producer, and music lover. Hopefully, looking at these lesser-known facts about him would inspire many to achieve great heights in diverse areas like him.

Useful Links

Tudor Investment Corporation

Robin Hood Foundation

Everglades Foundation

“The 11th Hour” Documentary