It's a new age on Wall Street. The president's spontaneous outbursts and mondo policy proposals have provided markets with promising profit opportunities, and hedge funds have rushed in to capture them. So it's no surprise to see hedge fund O.G. Paul Tudor Jones leading the pack with a highly sophisticated system that responds to Trump tweets in a way we can't imagine many other sizable hedge funds seizing upon: email alerts. According to the WSJ:
One of the world’s foremost macroeconomic traders, [Jones] is shying away from trading some currencies, including the Mexican peso, in part on the belief that Mr. Trump’s unpredictability may lead to severe market swings, according to people close to the firm. Tudor has set up email alerts to instantly blast its traders when Mr. Trump writes on the social networking website Twitter, the people said.
This is the same Paul Tudor Jones who just last year responded to disappointing returns at Tudor Investment Corp. by beefing up his team's quantitative arsenal with a bevy of highly credentialed scientists and mathematicians. It must have been surprising for them to end up programming an email blast tied to the president's Twitter account.
Tudor isn't the first to rig up such a system. The Bloomberg terminal has it. And recall the app that recently announced the so-called Trump Trigger, a feature that buzzes traders when a stock they own winds up being the subject of a Trump tweet. Neat as it is, of course, the app is functionally useless. There's no stable pattern of returns following Trump's tweets, either in the short or medium term. The best a trader can do is hand some money over to an algo.
One would hope that these email blasts aren't a central component of Tudor's investment strategy in the Trump age, but rather the kind of novelty that comes amidst handy in sales pitches to doddering old investors easily wowed by anything tech-sounding. Though there's also another potential motivation (and a sensible one): keeping traders off Twitter.