If only life were this easy: after a miserable year in 2017-2018, hedge fund Tudor Capital Europe trimmed a few admin staff and suddenly everything's fine again. In the year to March 2019, profits rose 233% to $49m. They're still not back up to the $68m level they were at before the miserable year took place, but they're getting there.
The dramatic recovery in profits at Tudor Capital Europe came after the fund cut five administrative staff last year, leading to a new total of 35 admin persons. Investment management staff remained steady at 29.
Correlation, however, is not the same as causation. With revenues fairly steady, Tudor's improved profitability was the result of a big reduction in operating expenses and an FX-related profit of $96k compared to a loss of $578k the previous year. $27m was shaved from operating expenses in the past year, but less than $2m of that came from lower wages and salaries paid to those unfortunate administrators.
Tudor spent an average of $260k per head on wages and salaries and pension allowances for its 64 London staff last year.
Someone at the fund did very well from the increase in profitability. In the year to March 2019, the highest paid member received $13.7m from the profit sharing scheme, compared to $4.3m the year before. However, given that one of Tudor's 'members' is listed as Tudor Overseas Holdings, which is based in America, the $14m may be being shared around several people at Tudor's office in Greenwich, or going straight to Paul Tudor Jones himself.
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