Career

Paul Tudor Jones II, born in Memphis, Tennessee, in 1954, is one of the defining figures of modern global macro trading. After studying economics at the University of Virginia, he began his career on the floor of the New York Cotton Exchange, learning the cotton futures business from the ground up. In 1980 he founded Tudor Investment Corporation, which he built into one of the best-known hedge fund firms in the world. Over more than four decades, Jones has earned a reputation for spotting macroeconomic turning points early and translating them decisively into positions.

The 1987 Crash

Jones became famous for predicting the “Black Monday” crash of October 1987, when the Dow Jones lost roughly 22 percent in a single day. Reading chart patterns and historical parallels, he had anticipated a severe sell-off and positioned himself accordingly. While most investors suffered heavy losses, his fund strategy is widely reported to have produced exceptional gains that year — by common estimates a profit in the hundreds of millions of dollars. The 1987 PBS documentary “Trader” captured this period, showing Jones as a young trader at work; he later asked for the film to be withdrawn from circulation.

Trading Style & Risk Management

Jones pursues a global macro approach: he trades across asset classes and countries — equities, bonds, currencies and commodities — basing decisions on broad economic themes. Yet at the heart of his method lies not prediction but risk management. He is known for anchoring on the 200-day moving average: when an asset trades below it, he turns defensive. “Defend first, attack second” captures his stance well — protecting capital and cutting losses early take priority over any single opportunity. This asymmetry between losses and the recovery needed to undo them shapes his entire discipline.

BMI Take

For private investors, the truly instructive lesson is less the spectacular 1987 bet than Jones’ obsession with limiting losses — a principle that transfers to any portfolio. Beyond trading, he is a noted philanthropist: in 1988 he co-founded the Robin Hood Foundation to fight poverty in New York, and in 2013 he helped launch JUST Capital, which measures responsible corporate behavior. His work shows that chasing returns and capital discipline are not opposites. This is an editorial educational profile, not investment advice.