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65. Tudor Investment Corp. / $10 billion

Location:

Greenwich, CT

Founded:

1980

2016 Hedge Fund 100 Rank:

No. 46

2016 Capital:

$12.8 billion

2015 Hedge Fund 100 Rank:

No. 51

2015 Capital:

$13.1 billion

Years on List:

Website:

www.tudorfunds.com

Address:

1275 King Street
Greenwich, CT 06831

Phone:

203-863-6700

Fax:

203-552-8610

Profile & News

Firm Overview

Tudor Investment Corp.'s founder and CIO, Paul Tudor Jones II, shot to fame after he accurately predicted the October 19, 1987, stock market crash known as Black Monday. Jones was one of a small handful of investors who actually made money that day, when the Dow Jones Industrial Average plunged 22 percent. Since then, Tudor has produced high double-digit annualized returns and has appeared on Alpha‘s Hedge Fund 100 ranking each year since the ranking was first conducted in 2002.

But his predictive powers didn’t seem to activate during the next major crash, some 30 years later. Jones was presented with a similar chance to capitalize on an impending global financial crisis but overlooked the subprime opportunity of 2007. Tudor Investment Corp. is still recovering from the crisis, when the firm’s overexposure to Lehman Brothers Holdings – which filed for bankruptcy that year – hurt its funds. Tudor’s long-short equity Raptor Global fund fell 21 percent as a result, and investors pulled nearly $6 billion from the firm between 2007 and 2008. Losses in the firm’s equity portfolio were felt keenly in the firm’s flagship Tudor BVI Global Fund, which has 40 percent of its assets in equity positions. The flagship faced its first single-digit performance in seven years during the crisis, netting a 7 percent return in 2007.

The Greenwich, Connecticut–based firm has experienced mixed success since the crisis, with firm-wide assets still some $1.35 billion short of their pre-2007 peak. Immediately following the crisis, Jones raised a redemption gate and formed a side pocket for illiquid holdings to insulate Tudor Investment Corp. from future shocks. He also restructured the firm, turning it from a multistrategy fund to a macro one. The two years through 2013 have seen a relative return to normalcy for Tudor. The firm bet on Japanese stocks and shorted the Japanese yen toward the end of 2012, helping it earn high returns. In fact, 75 percent of firm profits came in the last seven weeks of 2012, following these timely bets. Tudor BVI posted 14.28 percent net returns in 2013. This placed Tudor among the best-performing macro managers of the year, along with Caxton Associates and Moore Capital Management. The firm grew assets by $2.2 billion between 2013 and 2014. The Tudor BVI Global Fund returned a measly 3.2 percent in 2014.

Jones is one of the highest-earning hedge fund managers in the world, having earned $600 million in 2013. He was inducted into Alpha‘s Hedge Fund Hall of Fame in 2008, and in 2014, he qualified for the Rich List for the eleventh year. But Jones does not hoard his wealth: In 1988, he co-founded the Robin Hood Foundation, a private organization that seeks to end poverty in New York City.

Strategy

The firm manages hedge funds and private equity funds using fixed income, currencies, commodities, equity and related derivative instruments, and long-short strategies. Its hedge funds manage discretionary global macro, discretionary equity long-short, quantitative global macro and quantitative equity strategies. Its private equity funds concentrate on high-growth industries, such as financial technology, software, communications services and new media, among others.

Tudor’s Boston–based growth equity team, formerly known as Tudor Ventures, spun out of the Tudor Group on July 3, 2013. It is now an independent investment company named Spring Lake Equity Management. Tudor still manages the private growth equity Tudor Venture funds, which Spring Lake serves as sub-advisor to.

Funds and Fees Overview

The firm is winding down the Tudor Futures Fund and closed the Tudor Tensor Fund LP and Tudor Tensor Fund Ltd. in 2014. Tudor Ventures III is the only private equity fund as the firm closed Tudor Ventures II in 2014.

Tudor Hedge Funds	Annual Management Fee	Performance-Based Allocation
Tudor BVI Global Fund LP Trading Interests Tudor BVI Global Fund Ltd Trading Shares	2.75 percent to 4 percent	23 percent to 27 percent
Tudor BVI Global Fund LP Class Legacy Interests Tudor BVI Global Fund Ltd Class Legacy Shares	1 percent	10 percent
Tudor Discretionary Macro Fund LP Tudor Discretionary Macro Fund Ltd.	2 percent to 2.5 percent	25 percent
Tudor Momentum Fund LP Tudor Momentum Fund Ltd	1 percent	20 percent
Tudor Employee Investment Fund LLC	0 percent	0 percent
TEI Legacy LLC	0 percent	0 percent
Tudor Private Equity Funds
Tudor Venture III LP	2 percent	20 percent

A minimum initial investment in a fund managed by Tudor ranges from $3 million to $10 million.

Clients

Tudor manages hedge funds, private equity funds and managed accounts for sovereign entities, high-net-worth individuals, pension funds, nonfinancial corporations, financial institutions, endowments and foundations, among others.

Regulatory Assets Under Management (RAUM)*
Discretionary	$23.23 billion (22 accounts)
Nondiscretionary	$0 (0 accounts)
Total	$23.23 billion (22 accounts)

Employees	363
Clients	26–100 total	55 percent non-U.S.
Fiscal Year Ends	December
All data as of December 31, 2014. *Regulatory Assets Under Management (RAUM) includes no deduction of offsetting liabilities, thus representing gross AUM, not net AUM. RAUM calculations include leverage, proprietary assets and uncalled capital commitments, among other items not required in the calculation of AUM.

Owners and Executives

Name	Position	Position Held Since
Paul Tudor Jones II	Co-Chairman, CIO, Management Committee, Director	11/1980
Andrew Paul	General Counsel, Management Committee, Director	07/1989
Richard Fisher	Director	06/1991
Mark Dalton	Co-Chairman, CEO, Management Committee, Director	09/1998
John Torell	CFO, Management Committee, Director	06/2001
Mark Nicholson	Director	12/2001
Steven Evans	Member of Tudor Management Committee	01/2003
Gavin Boyle	Co-President, Management Committee, Director	01/2008
Michael Riccardi	Co-President, COO, Management Committee, Director	01/2010
Kevin Wulwik	CCO	01/2013
Andrew Bound	Member of Tudor Management Committee	01/2014
Aadarsh Malde	Member of Tudor Management Committee	01/2014
Louise Zarrilli	Head of Investor Relations, Management Committee, Director	01/2014