Why Paul Tudor Jones Just Sold Boeing for Bitcoin: A Hedge Fund's Bold Move

There aren't too many better investors than the billionaire hedge fund manager Paul Tudor Jones. Jones launched Tudor Investment Corp in 1980 and made headlines in 1987 by correctly predicting the stock market crash on Black Monday, when the Dow Jones fell by an astonishing 22%. More than four decades later, he remains the chief investment officer of his firm, which has reportedly generated average annual returns of 19%, according to Hedge Fund Alpha. His recent investment decisions are ones to watch closely.

Safety Concerns and Regulatory Issues Crushed Boeing

In the third quarter, Tudor Investment Corp sold its equity position in Boeing and increased its put options, indicating a bearish outlook on the company. If you've been following the news, you know Boeing has faced significant scrutiny lately. For instance, in January, an Alaska Airlines flight was forced to make an emergency landing due to a door being ripped off a Boeing plane. This incident, along with other findings of loose parts on Boeing 737 MAX 9 Jets, led to increased oversight from the Federal Aviation Administration (FAA) and the National Transportation Safety Board (NTSB).

Boeing's troubles aren't new; the company previously dealt with two fatal crashes of the 737 MAX Jet in 2018 and 2019, resulting in a global grounding of the aircraft. After a series of setbacks, Boeing recently resumed production of the 737 MAX Jet following a labor strike, but it has incurred over $8 billion in losses this year and continues to face negative cash flow.

A Crypto Fan

In contrast to his bearish stance on Boeing, Jones has been a vocal supporter of Bitcoin. In the third quarter, Tudor Investment Corp significantly increased its position in the iShares Bitcoin Trust ETF by more than 400%. Jones has expressed concerns about the U.S. government's fiscal situation, highlighting the tens of trillions in debt and a fiscal deficit. He believes that inflation is an inevitable outcome of such spending, famously stating that "all roads lead to inflation."

Jones views Bitcoin as a digital gold and a hedge against inflation. With only 21 million tokens that can ever be mined, and approximately 19.8 million already in circulation, Bitcoin's scarcity is appealing. Its price recently surpassed $107,000, and its resilience during periods of high inflation and rising interest rates has made it increasingly accepted in mainstream finance. As more investors like Jones back Bitcoin, its position as a safe-haven asset continues to strengthen.