There aren’t many better investors than billionaire hedge fund manager Paul Tudor Jones. Jones launched Tudor Investment Corp in 1980. In 1987, Jones correctly predicted the stock market crash on Black Monday, when the Dow Jones fell by an incredible 22%. More than four decades after launching Tudor Investment Corp, Jones is still the chief investment officer of the company, which has reportedly delivered an average annual return of 19%, according to Hedge Fund Alpha. These achievements have made Jones and his firm a must-watch for stock ideas. Tudor recently sold Investment Corp Boeing (NYSE:BA) and bought this popular cryptocurrency instead.
Tudor Investment Corp sold its stock position in Boeing in the third quarter and owns many more put options than call options. Puts make money when a stock falls by a certain amount, so Tudor appears bearish on Boeing. Tudor Investment Corp owns over 2,600 positions, so we don’t know if Jones has anything to do with this sale.
If you’ve been following the news this year, you’ve probably seen Boeing in the headlines. In January one Alaska Airlines The flight on a Boeing plane was aborted after one of the plane doors was ripped off its hinges. Other airlines found more loose parts from Boeing 737 MAX 9 jets, leading to investigations by the Federal Aviation Administration (FAA) and the National Transportation Safety Board (NTSB).
It is not the first time that Boeing has encountered problems with its 737 MAX Jet. Two crashes with fatalities in 2018 and 2019 led to the global grounding of the 737 MAX Jet, and Boeing’s MAX Jet failed 37% of audits conducted by the FAA. After the door incident in January, the FAA allowed the 737 MAX 9 to resume flights, but halted production of the MAX 9 until Beoing gained better control over the inspection process.
Boeing recently resumed production of the 737 MAX Jet after a strike, which ended with Boeing granting its employees a 38% raise over the next four years. The battle has translated into more than $8 billion in losses and negative operating cash flow this year, a trend expected to continue into 2025. Boeing will likely always remain an important part of the American economy, but it will take time to transform this company. all around.
Jones has been vocal in his support of Bitcoin (CRYPTO: BTC)The world’s largest cryptocurrency, and Tudor Investment Corp, backed this view in the third quarter of the year, expanding its position in the world. iShares Bitcoin Trust ETF (NASDAQ: IBIT) by more than 400%.
