Last Updated on July 17, 2022 by Oddmund Groette
Paul Tudor Jones is a famous trader and hedge fund manager. Many negative things happened during the 1987 stock market crash, but one man became very popular and super-rich for his predictions and gains. He would go on to be known globally as Hedge fund manager Paul Tudor Jones II. He quickly rose to fame because he managed a 62 percent gain in October 1987, the same month as Black Monday. Furthermore, he is one of the few (if any other at all) that has managed triple-digit annual returns five years in a row!
In this article, we look at the early life and career of Paul Tudor Jones, and we look at some of his trading strategies and famous quotes.
Paul Tudor Jones’ early life and career
Born on the 28th of September, 1954 in Memphis, Tennessee, Paul Tudor Jones is an American billionaire who got his career jumpstart at his dad’s small business paper — the Memphis Daily News — where he wrote under the pseudonym Paul Eagle in high school and college.
During his early years, he attended the Presbyterian Day School, an all-boys elementary school, where he graduated before attending Memphis University School for high school. His university education was at the University of Virginia, where he emerged the welterweight boxing champion. During this period, he held the position of Sigma Alpha Epsilon fraternity president. Thanks to his writing job at his father’s business paper, he was able to pay his tuition throughout the university period until 1976, when he bagged a bachelor’s degree in economics from the University of Virginia.
After turning down his Harvard Business School Admission in the 1980s, Jones launched his hedge fund, Tudor Investment Corporation, an asset management firm headquartered in Stamford, Connecticut. The corporation has grown exponentially, reportedly managing over $9 billion in assets. In 1988, Jones was among the founders of the Robin Hood Foundation. The foundation was aimed at reducing poverty in New York City.
Interestingly, the Robin Hood Foundation is just one of Jones’ many philanthropic moves. He had adopted a sixth-grade class in 1986 in Bedford–Stuyvesant, Brooklyn at an underperforming public school by guaranteeing college scholarships to students who graduated from high school. This was later known as the “Bedford Stuyvesant I Have A Dream Foundation.”
Paul Tudor Jones’ alma mater was not left out in his show of philanthropy. He has made many financial contributions to the University of Virginia, where he graduated. On one occasion, he gave them $44 million to build a sports and concert arena which the university named after his father — John Paul Jones.
Jones got married in 1988 to Sonia Klein, an Australian yoga entrepreneur who is based in New York. The wedding took place in Memphis, and the family moved to Greenwich, Connecticut, in the early 1990s. They have four children — Caroline, Dorothy, Chrissy, and Jack. Jones has encouraged his three daughters to go into macro trading.
Paul Tudor Jones wealth
In November 2019, Jones was reportedly worth about US$5.3 billion by Forbes Magazine. This report placed him in the position of the 343rd richest person on the Forbes 400 and the 7th highest-earning hedge fund manager.
Paul Tudor Jones strategy
Among many things, Paul Tudor Jones is famous for his comments on the benefits of the 200-day moving average. Being long when the price is above and short out when it’s below is just like playing defense, he argues. An example of such a moving average strategy is this strategy:
Apart from that, he is, like all traders and managers, very secretive about what he does.
Paul Tudor Jones and Bitcoin
In May 2021, he caught the crypto community’s attention when he wrote that bitcoin was an excellent inflation hedge and revealed that he put about 2% of his portfolio in bitcoin. He is also known for his macro trades, particularly his bets on interest rates and currencies. Little wonder he is considered to be one of the best macroeconomic traders that ever existed.
To this day, Paul Tudor Jones is still an advocate of bitcoin.
Other famous traders and their trading strategies
- Top motivational trading quotes
- How Jim Simons’ trading strategies Made 66% A Year (The Medallion Fund)
- Ray Dalio – life, investment strategies, and philosophy
- Jesse Livermore – The World’s Most Legendary Trader?
- Richard Dennis – The Turtle Trader (trend follower)
- William Eckhardt – The mathematical trader (An early Nassim Taleb)
- Stanley Druckenmiller – George Soros’ left hand
- Micheal Steinhardt – To Make Money Is Should Be A Little Painful
- David Einhorn – investment strategy and philosophy
- Bill Ackman – investment strategy and philosophy
- Steve Cohen – Stock Market Wizard
- Mark Douglas – All About The Correct Mindset
- Steve Clark – hedge fund market wizard
- Larry Williams – Indicator Innovator, Trader, And Tax Rebellion
- Jim Rogers – The Adventurist Macro Trader
- Larry Hite – All About Risk
- Randy McKay – Market Wizard currency trader
- Michael Marcus – The First Market Wizard
- Charles Faulkner – trader and programmer
- Richard Driehaus – Turtle Trader
- Dana Galante – the Market Wizard short seller
- Linda Raschke – Reading The Music Of The Markets
- Nicolas Darvas – How I made $2,000,000 In The Stock Market
- David Shaw – the king of quant – trading strategies
- Van K. Tharp – The psychology of trading
- Larry Connors – Mean Reversion Trader
- Rob Hanna – Quantifiable Edges
- Ahmet Okumus – From Istanbul to Wall Street
- Steve Watson – Small cap investor
- Gil Blake – The master of consistency
- Blair Hull – All about the trading edge
- Howard Seidler – an original Turtle Trader (The Turtle Experiment)
- Steve Lescarbeau – mutual fund trader
- Tom Basso – Mr. Serenity
- Bruce Kovner – Trade Small And Manage Risk
- Michael Carr – Trader, Motivator, And Speaker
- Bill Lipschutz – FOREX trader
- Brett Steenbarger – All About Trading Psychology
- Joe Ritchie – an early quant in the option markets
- Micheal Masters – Stock Market Wizard
- Monroe Trout – one of the first Market Wizards
- Alexander Elder – Trading Author And Indicator Innovator
- Mark Ritchie – Master Option Trader (God In The Pits)
- Alphonse Fletcher Jr. – Triple Digit Returns
- Mark Minervini – stock market wizard trader
- Mark D. Cook – market wizard trader and investor (Net worth and strategy)
- Jeffrey Yass – the founder of Susquehanna
- Claudio Guazzoni – Multillingual trader
- Micheal Lauer – Stock Market Wizard?
Paul Tudor Jones trading strategy quotes
We end the article by listing some of the most famous quotes from Paul Tudor Jones:
My metric for everything I look at is the 200-day moving average of closing prices. I’ve seen too many things go to zero, stocks and commodities. The whole trick in investing is: “How do I keep from losing everything?” If you use the 200-day moving average rule, then you get out. You play defense, and you get out.
I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have.
Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.
The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.
If life ever ceased to be an educational experience. I probably wouldn’t get out of bed in the morning.
I always believe that prices move first and fundamentals come second.
Every day I assume every position I have is wrong.
You learn more from your losses, than from your gains.
I know that to be successful, I have to be frightened. My biggest hits have always come after I have had a great period and I started to think that I knew something.