Paul Tudor Jones II, born on September 28, 1954, is not just an American billionaire hedge fund manager, but also a devoted conservationist and philanthropist. His journey from Memphis, Tennessee, to founding Tudor Investment Corporation and the Robin Hood Foundation showcases a remarkable success story. In this article, Zatrun.com has delved into the life and achievements of Paul Tudor Jones II, exploring his early life, education, and influential career.
Paul Tudor Jones II: Early Life and Education
Paul Tudor Jones II hails from Memphis, Tennessee, where his father, John Paul “Jack” Jones, practiced transportation law and was the publisher of The Daily News. Jones attended Presbyterian Day School and later Memphis University School for high school.
His path led him to the University of Virginia, where he not only became a welterweight boxing champion but also served as the president of the Sigma Alpha Epsilon fraternity. To support his education, Jones even contributed to his family’s newspaper under the pseudonym Paul Eagle. In 1976, he earned his bachelor’s degree in economics from the University of Virginia.
Jones’ journey into the financial world began with a fateful introduction to commodity broker Eli Tullis, who hired him to trade cotton futures at the New York Cotton Exchange. Despite an initial setback, where he was fired for dozing off at his desk, Jones persevered. He later took on roles of responsibility, serving as the treasurer in 1986 and chairman of the New York Cotton Exchange from August 1992 to June 1995.
In 1980, Paul Tudor Jones II founded Tudor Investment Corporation, an asset management firm headquartered in Stamford, Connecticut. The firm’s diverse investment capabilities span global macro trading, fundamental equity investing, venture capital, commodities, event-driven strategies, and technical trading systems. With a substantial fee structure, the firm charges four percent per annum of assets under management and twenty-three percent of the profits.
Jones’ early successes include accurately predicting Black Monday in 1987 and profiting significantly during the crash. His returns during the event amounted to an estimated $100 million. In the 1990s, he skillfully navigated the Japanese equities bubble burst and returned 87.4 percent by shorting the market. Jones’ influence in the financial world grew as he continued to make strategic moves, becoming an essential figure in the development of the New York Board of Trade’s U.S. dollar index futures contract.
Investments
Notably, in 2012, Paul Tudor Jones II was among the investors who acquired Louis Dreyfus Highbridge Energy, forming Castleton Commodities International, LLC. His investment philosophy, primarily based on technical analysis, emphasizes momentum factors that drive markets. In addition, Jones made headlines when he revealed his ownership of Bitcoin as a hedge against inflation.
As of November 2019, Forbes Magazine estimated Paul Tudor Jones II’s net worth at $5.3 billion, positioning him among the highest-earning hedge fund managers. In 2019, he and his wife joined the Giving Pledge, committing to donate most of their wealth to charitable causes, citing their upbringing in the Church as a significant influence.
Conservation and Philanthropy
Jones has been actively involved in conservation efforts, co-founding the Everglades Foundation, an organization dedicated to preserving the Everglades. In 1990, he pleaded guilty to illegally destroying protected wetlands on his Maryland Eastern Shore hunting estate, leading to a $1 million fine. He has also been committed to educational initiatives, founding the Excellence Charter School in Brooklyn and supporting the Bedford Stuyvesant I Have A Dream Foundation.
aul Tudor Jones II has demonstrated his commitment to his alma mater, the University of Virginia, with significant donations, including $44 million for a sports and concert arena named the John Paul Jones Arena. In 2012, a $12 million gift from Jones and his wife established the Contemplative Sciences Center at the university.
Jones is the founder of the Robin Hood Foundation, dedicated to poverty reduction in New York City. He also set up the nonprofit Just Capital, focused on promoting just practices in companies and offering a for-profit ETF comprising such companies.
Paul Tudor Jones II’s reputation as a macro trader and philanthropist has grown steadily over the years. He has received accolades, including being inducted into Institutional Investors Alpha’s Hedge Fund Manager Hall of Fame in 2008.
