Note from the CEO: Ah, after sub-par performance and large redemptions at the legendary investment firm it’s time to bring in the quants. Obviously the next step is robots, and if new losses persist, Jones will be able to blame math and nameless robots. “I didn’t do it, I didn’t do it”.
"Even for Paul Tudor Jones, who became a hedge fund legend by trading the old fashioned way, it’s time to bring in the quants.
Jones, suffering losses and about $700 million in investor withdrawals in the second quarter, has accelerated a high-tech revamp at Tudor Investment Corp. in the past year, according to three people familiar with the matter. Scientists and mathematicians, some with doctorates, have joined Tudor to bring new analytical rigor to its trading strategies, the people said.
Jones, 61, who helped spawn the birth of the hedge fund industry, has struggled along with other macro managers to outperform for several years. Some long-time money managers have left Tudor as it has bled $3 billion in assets since June of last year. Jones has told colleagues that his firm needs to get up to speed with newer technologies as quant funds post robust profits, said the people, who declined to be identified because the company is private."
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