Paul Tudor Jones Forms LaunchPad to Train Traders

Jun 22 2015 | 3:41pm ET

Hedge fund magnate Paul Tudor Jones has launched a new venture aimed at incubating macro traders. 

LaunchPad Trading will be a joint venture with Joseph Niciforo’s algorithmic trading firm HC Technologies. It will invest proprietary capital, funded by Jones and HC, in early-career portfolio managers to manage assets across currency, fixed income, equity index and commodity asset classes, and related derivative instruments in global markets, according to LaunchPad’s website. 

The new company will monitor the trading capabilities of each manager and groom them to potentially manage client assets on the Tudor platform or form their own asset management firm with seed capital provided by HCT and Tudor.

Candidates should have two to six years of macro trading experience and be able to discuss their ideas and strategies on portfolio construction and risk management. Former Tudor executive Nancy Andrews, CEO of the new company, will select individuals from the applicant pool for further review by a five-member committee that will make final recommendations. 

New York-based LaunchPad says it will initially hire five traders this summer, and has plans to expand the cohort to 20 over the next few years, noted Andrews.

“There are fewer options open to traders who want to learn trading skills and manage capital at the start of their career,” Jones said in a statement quoted by Bloomberg. “We want to provide an environment where they can get that experience.”

The move comes many large banks shutter their traditional prop trading desks in the wake of increased regulatory oversight put in place following the global financial crisis. Accordingly, what was once the primary training ground for new traders has been closed, forcing hedge funds and other buy-side managers to resort to new methods to develop the necessary talent.

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