Paul Tudor Jones — The decisions behind Tudor Investment

From a 60 to 70 per cent loss on trading accounts to a world-famous investment manager. Which decisions made the difference?

Paul Tudor Jones began his career in the US cotton market. In 1979, by his own account, he made a trading error that cost the accounts involved roughly 60 to 70 per cent of their value. That experience changed his view of risk, position sizing and financial discipline.

In 1980 he founded Tudor Investment Corporation. Seven years later he became known worldwide for his positioning around the stock market crash of 19 October 1987. What began as the work of an individual trader grew into an international investment management organisation.

But behind that success lies a far more complicated story.

In this independent FOREFACT publication you discover how Paul Tudor Jones gained his first experience on the trading floor, dealt with big losses, founded an investment management firm and, together with other professionals, further developed research and risk control.

It doesn’t only cover the successes. It also examines the financial risks, wrong market calls, difficult decisions about protection against falling prices, the role of other people involved and the challenges of a growing organisation. This includes the difficult period in 2016, when Tudor faced investor withdrawals and staff cuts.

From story to practice

This is more than a founder biography. As you read, you are challenged to make decisions yourself. In six in-depth Decision Labs you learn, among other things, how to calculate financial losses and recovery percentages, limit risks in advance, critically assess probability and return, analyse protection strategies and understand the difference between assets under management, company income and actual results.

What do you get?

• 52 pages with the full founder story.

• Eight chronological chapters on how Paul Tudor Jones and Tudor Investment developed.

• Six Decision Labs with financial theory and fictional practical calculations.

• Six sets of digitally fillable worksheets with 24 answer fields in total.

• Financial analyses, historical decision points and a timeline.

• A six-week Reality Test with exercises that use no real trading capital.

• 42 source references for further reading and verification.

Who is this guide for?

For curious readers, future entrepreneurs and anyone who wants to understand how an individual trader built an international investment management organisation. Also of interest if you want to learn more about risk management, the financial markets, decision-making, entrepreneurship and the differences between returns, assets and company income.

You don’t just read how Tudor Investment grew. You examine which decisions, risks and lessons you can apply yourself.

Digital product · 52 pages · PDF · Available immediately after purchase

This publication was developed independently by FOREFACT and is not affiliated with, sponsored by or endorsed by Paul Tudor Jones, Tudor Investment Corporation or any affiliated companies.

This publication is for educational purposes only and does not contain personal investment advice. Trading in financial instruments, including futures and options, carries significant risks and can lead to losses greater than the original investment.