There aren’t many better investors than billionaire hedge fund manager Paul Tudor Jones. Jones founded 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 still serves as chief investment officer of the company, which has reportedly generated average annual returns of 19%, according to Hedge Fund Alpha. These achievements have made Jones and his company a company to watch when it comes to stock ideas. Recently, Tudor Investment Corp sold boeing (NYSE: BA) and instead bought this popular cryptocurrency.
Tudor Investment Corp sold its stock position in Boeing in the third quarter and owns many more put options than calls. Put options make money when a stock falls a certain amount, which is why 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, a Alaska Airlines The flight on a Boeing plane was disrupted after one of the plane’s doors was torn off its hinges. Other airlines found more loose parts on Boeing 737 MAX 9 Jets, prompting scrutiny from the Federal Aviation Administration (FAA) and the National Transportation Safety Board (NTSB).
This is not the first time that Boeing has experienced 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 audits conducted by the FAA. After the January gate incident, the FAA allowed the 737 MAX 9 to resume flights but halted production of the MAX 9 until Beoing gained better control over its inspection process.
Boeing recently resumed production of the 737 MAX Jet following a labor strike, which ended with Boeing giving its workers a 38% pay increase over the next four years. The difficulties have resulted in more than $8 billion in losses this year and negative operating cash flow, a trend that is expected to continue into 2025. Boeing will likely always be an important part of the U.S. economy, but It will take time to turn this company around.
Jones has openly expressed his support for bitcoin (CRYPT: BTC)the world’s largest cryptocurrency, and Tudor Investment Corp backed this view in the third quarter of the year, increasing its position in the iShares Bitcoin Trust ETF (NASDAQ:IBIT) by more than 400%.
