There aren't too 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 an incredible 22% discount. More than four decades after launching Tudor Investment Corp, Jones still serves as the company's chief investment officer, which has generated average annual returns of 19%, according to Hedge Fund Alpha. These successes have made Jones and his company something to watch for stock ideas. Tudor Investment Corp. recently sold Boeing (NYSE:BA) and buy this popular cryptocurrency instead.
Tudor Investment Corp sold its equity position in Boeing in the third quarter and owns far more put options than calls. Makes money when a stock falls by a certain amount, so Tudor appears bearish on Boeing. Tudor Investment Corp owns more than 2,600 positions, so we don't know if Jones had 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, an Alaska Airlines The flight using a Boeing aircraft was cut short after one of the plane's doors was torn off its hinges. Other airlines found more loose parts on Boeing 737 MAX 9 Jets, leading to scrutiny from the Federal Aviation Administration (FAA) and the National Transportation Safety Board (NTSB).
This is not the first time that Boeing has had problems with its 737 MAX Jet. Two fatal accidents in 2018 and 2019 led to the global grounding of the 737 MAX Jet, and Boeing's MAX Jet failed 37% of inspections conducted by the FAA. After the January door incident, the FAA allowed the 737 MAX 9 to resume flights but suspended production of the MAX 9 until Boeing gained better control over its inspection process.
Boeing recently restarted production of the 737 MAX Jet following a labor strike, which ended with Boeing giving its workers a 38% pay boost over the next four years. The struggles have translated into more than $8 billion in losses this year and negative operating cash flow, a trend expected to continue into 2025. Boeing will likely always be an important part of the American economy, but it is going to take time to turn this company around. around.
Jones has been vocal about his support for Bitcoin (CRYPTO: BTC)the world's largest digital currency, and Tudor Investment Corp supported this view in the third quarter of the year, increasing its position in the iShares Bitcoin Trust ETF (NASDAQ: IBIT) more than 400%.
