Quotes From Hedge Fund Manager Paul Tudor Jones ~ market folly

Friday, August 8, 2008

Quotes From Hedge Fund Manager Paul Tudor Jones

Paul Tudor Jones is one of the most successful global macro fund managers out there. He manages in excess of $17 billion at his hedge fund, Tudor Investment Corp. Although these quotes are older (taken from around 2000), they are very generalized and still serve as great advice for any investor/trader.

"I'd say that my investment philosophy is that I don't take a lot of risk, I look for opportunities with tremendously skewed reward-risk opportunities. Don't ever let them get into your pocket - that means there's no reason to leverage substantially. There's no reason to take substantial amounts of financial risk ever, because you should always be able to find something where you can skew the reward risk relationship so greatly in your favor that you can take a variety of small investments with great reward risk opportunities that should give you minimum draw down pain and maximum upside opportunities."

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"And then at the end of the day, the most important thing is how good are you at risk control. Ninety-percent of any great trader is going to be the risk control."

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Q: Let's play a word association game. I'll say a word and you say whatever comes to mind.

Q: Technical analysis

Paul Tudor Jones: Made well over half the money that I've made in my lifetime.

Q: Fundamental Analysis

Paul Tudor Jones: Made the rest.

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Source:
http://chinese-school.netfirms.com/Paul-Tudor-Jones-interview.html


2 comments:

TraderMark said...

whoa hedge funds! points in direction of SD. ouch. Major holding in many.

J. (marketfolly) said...

yea i saw that. for some reason though i have a feeling that they already have been unwinding positions and taking profits over the past month and that this drop doesn't affect too many of them.

will be interesting to see who still has it on their books next week when 13fs come out