Tudor Investment Corporation
Last Updated: 12/3/2020
Tudor Investment Corporation is a Corporation that started in 1980 and is primarily owned and controlled by Paul Tudor Jones.
Tudor is a multi-strategy investment adviser focused primarily on discretionary and quantitative investment strategies, including but not limited to discretionary global macro, event driven equity, quantitative global macro and other quantitative strategies, as more fully described in Item 8 below. Tudor employs trading strategies across a broad range of securities and derivative instruments in the fixed income, currency, commodity and equity asset classes, on both a long and short basis, for varying investment horizons.
Tudor Investment Corporation operates out of an office in Stamford, CT. Based on the Form ADV filed on 2020-03-30 00:00:00, the investment firm is comprised of 278 employees, only 127 of whom performs investment advisory functions.
- Name: Tudor Investment Corporation
- CRD No: 159792
- Filing Recorded: 2020-03-30 00:00:00
- Year of Origin: 1980
- Employees: 278
- Clients: 25
- AUM: 38,397,633,000
- Management Fee: 0-2.25 Percent
- Performance Fee: 0-27 Percent
- Client Type: Investment Companies, Pooled Investment Vehicles
- Assets Traded: Unspecified
According to the brochure submitted to IAPD, Tudors investment strategy is as follows:
Tudor Hedge Funds:
The principal investment objective of the Tudor Hedge Funds is to seek capital appreciation through discretionary and quantitative trading and investing on a global basis, both long and short, across a broad range of securities and derivative instruments in the fixed income, currency, commodity and equity asset classes, both exchangetraded and OTC.
Tudor employs one or more of the following principal investment strategies in managing each of the Tudor Hedge Funds. Please note that the list below only provides the principal investment strategies employed by Tudor at the date of this brochure; other strategies may be employed from time to time or may be elevated to principal status without prior notice.
Directional Global Macro: Directional global macro Portfolio Managers trade and invest on global macroeconomic themes through both fundamental and technical analysis, both long and short, in various types of financial instruments that may include, without limitation, fixed income, currency, commodity, and equity asset classes and related derivative instruments. Portfolio Managers may focus on specific asset classes or trade and invest across asset classes and global markets depending on their specific expertise and perception of trading and investment opportunities. The trades initiated by Portfolio Managers focused on this strategy range from short-term to long-term time horizons, with a typical focus on liquid instruments. These trades are initiated primarily in developed countries and in some emerging economies. Certain Portfolio Managers may employ quantitative models and other analytical tools in connection with their portfolio management.
Orthogonal: Certain Portfolio Managers specialize in other strategies referred to as “orthogonal strategies” that are differentiated from, and generally non-correlated with, Tudor’s directional global macro strategy. These strategies may include but are not limited to fixed income relative value, global macro relative value, emerging markets, tactical/short term FX, volatility and correlation-based strategies, commodity, data driven equity trading and equity and macro event trading. Portfolio Managers may employ quantitative and other analytical tools in connection with these strategies.
Hybrid: Hybrid strategies employ elements of both directional global macro and orthogonal strategies. In addition to directional global macro, certain Portfolio Managers will utilize other discretionary trading and investing strategies, including relative value trading, basis trading and volatility trading on an opportunistic basis. Such Portfolio Managers will allocate varying amounts to such strategies including, at times, a majority of their allocated capital to either directional global macro or orthogonal approaches. Portfolio Managers employ quantitative and other analytical tools in connection with this strategy.
Event Driven: Event driven trading and investing is both long and short, primarily in U.S. and European equity securities and using a strategy that is primarily focused on corporate events, including, without limitation, mergers, spin-offs, tender offers, exchange offers, liquidations, changes in management, structural changes in the marketplace, asset transfer, leaving or entering new business lines, changing capital structure, corporate reorganization, bankruptcies, significant litigation and certain other hard and soft catalysts. Instruments traded consist principally of publicly listed equity securities (including New Issue Securities) and related corporate or derivative securities. Exchange-traded funds and equity indices may be used to hedge portfolio exposures or to otherwise express an investment view. The investment portfolio is then constructed based on a number of factors, with sizing based on the Portfolio Manager’s expected probability of success and volatility of the underlying investment opportunity after adjusting for relevant hedging. Individual trade structure and hedging is generally based on fundamental and statistical analysis.
Quantitative: Quantitative investment and trading strategies vary by assets traded, strategic approach, risk profile and other characteristics. They include, but are not limited to, (i) statistical arbitrage strategies that are primarily equity strategies with horizons ranging from short-term to medium-term, (ii) credit strategies, including but not limited to credit default swap and U.S. corporate bond strategies, (iii) volatility strategies and (iv) other strategies focused primarily in futures and foreign exchange utilizing a variety of technical, fundamental and other data inputs. Certain quantitative Portfolio Managers may also engage in investment and trading activities that are largely opportunistic.
Investment advisory services are provided to Managed Accounts in accordance with investment guidelines and restrictions developed in consultation with the Managed Account holder, or in accordance with a particular mandate selected by the Managed Account holder at the outset of Tudor’s relationship with the Managed Account holder. These investment guidelines and restrictions are set out in the relevant Offering Materials. Managed Accounts generally employ one or more of the principal investment strategies implemented by the Tudor Hedge Funds.
Proprietary Accounts generally employ one or more of the principal investment strategies implemented by the Tudor Hedge Funds, some of which trade and invest on a parallel, “side-by-side” and levered basis (utilizing a lower funding level). However, certain Proprietary Accounts also currently trade certain investment strategies that are not currently employed by any Client accounts but may be employed by Client accounts in the future. For example, Tudor may engage in strategic initiatives currently or in the future, such as the existing macro pipeline machine learning research and development project established over several years of research and development currently being incubated, that may or may not be allocated to Client accounts or solely to Proprietary Accounts.
Tudor Private Equity Fund
Tudor Ventures III L.P. generally focuses on managing investments in companies in high growth industries, including but not limited to financial technology, software, communications services, new media, information technology infrastructure and web-related businesses.
Methods of Analysis
In addition, Tudors methods of analysis include:
Tudor maintains a centralized Research Department overseen by Tudor’s Director of Global Research, who reports to the Chief Investment Officer and the Chief Executive Officer. The Research Department includes economists, research analysts and market strategists who focus on analysis of economic fundamentals and policy triggers across fixed income, currency, commodity, equity and credit markets. The Research Department makes extensive use of proprietary quantitative techniques involving econometrics, simulations, asset pricing, and scenario analyses and works closely with Portfolio Managers to identify macro themes and trading strategies around them.
In addition to the Research Department, Tudor’s Portfolio Managers may utilize other internal research analysts, including its dedicated Flow of Funds Research Group, and dedicated global macro and equity analysts, as well as third-party data and research service providers. The data and research generated by the Research Department, internal research analysts and third-party service providers are used by Portfolio Managers to identify, validate and modify trading themes in conjunction with other data sources.
The Flow of Funds Research Group utilizes a capital flows based approach to forecasting asset price movements in commodity, currency, fixed income and equity markets, and seeks to identify and implement trading themes based on potential demand/supply imbalances that lead to predictable asset price movements. Furthermore, the Flow of Funds Research Group seeks to map global capital flows and positioning in as close to real-time as possible in order to help Portfolio Managers better understand the potential scale of price movements subject to a given catalyst.
Capital Allocation Process:
Each Client has a process to allocate capital among the various Portfolio Managers and/or strategies. This process, working in conjunction with Tudor’s risk guidelines, fund investment parameters as set out in the relevant Offering Materials, if any, and input from various departments and Portfolio Managers, provides a forum for the allocation of capital and for discussions related to investment diversification, principal risk factors and portfolio concentration. Normally, this process is overseen by a capital allocation or investment committee. That committee generally includes the Portfolio Manager(s) with overall responsibility for the relevant Client or the Chief Investment Officer. In the event that a Portfolio Manager’s investment capacity is not sufficient to satisfy the recommendations of the capital allocation or investment committee of multiple Clients, such conflict will be reviewed initially by Tudor’s Capital Allocation Committee. If a conflict persists, a final determination will be made by a subset of the Tudor Management Committee, in consultation with other Tudor Personnel including senior members of the Risk Management and Legal and Compliance Departments. As described in Items 6 and 10, Tudor faces a conflict in interest in making capital allocation decisions between multiple Client accounts and between Client accounts and Proprietary Accounts. The day-to-day oversight monitoring processes for Client accounts are set out in more detail in Item 13.
Top 10 Holdings from Form 13F
Reporting Period: 09/30/2020
|Advanced Disposal Services Inc
|Gci Liberty Inc - Class A
|Aimmune Therapeutics Inc
|National General Hldgs
|Kingsoft Cloud Holdings-adr
|Keurig Dr Pepper Inc
|Natura &co Holding-adr
Historical 13F Filings
EdgeGiant has compiled all 13F filings since Q2 2013 for your convenience. You can view historical portfolio position forTudor Investment Corporationin our 13F section HERE.
To get the comprehensive list of holdings that fall under 13F regulatory guidelines, check out our write up on how to access and use 13Fs in your personal investment decisions.