There once was a time when hedge fund managers were the toast of the town.
Kings of all they surveyed.
Masters of the universe.
For a glimpse of those magical times, to see what it was like to be a hedge fund kingpin before the decline set it, have a look at Trader: The Documentary and observe Paul Tudor Jones in all of his obnoxious early-30s glory. Oh, wait, you can’t, because PTJ has made sure you can’t, and anyone known to get his or her hand on a copy becomes the object of the Tudor Investment Corp. founder’s occasional human hunting parties.
No matter. If you should ever catch a glimpse, cherish it, for the man it depicts is no more. Paul Tudor Jones can no longer trust himself to manage his clients’ money, not all of it. And those 20 young macro traders he brought on last year apparently haven’t stopped the rot. So he’s throwing in the towel and bringing in the computers. The machines haven’t quite won just yet. But they are winning.
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….
Money managers, who retain the final say in trades, are working with quants and their tools, such as visualizations of complex data sets and real-time trade modeling that incorporates price correlations across multiple markets, one of the people said….
Jones is also exploring more sophisticated machine learning technology and big data analysis, joining firms such as Highbridge Capital Management and Point72 Asset Management, which have brought on coders to build models that find patterns in the data.