Paul Tudor Jones II's investment team probably needn't have
bothered consulting its own analysts when it came to deciding
investments in ECNs, those discount trading platforms that
continue to chomp away at the profit margins of the big
exchanges by offering traders lower execution fees.
Tudor Investments recently made a killing on Knight Capital
Group (the parent of hedge fund Deephaven Capital Management),
which has been capturing a larger percentage of booming boards
like Nasdaq, the American Stock Exchange and the New York Stock
Exchange. In fact, Knight's stock has doubled from $7 to $14
since the start of the year.
Filings with the U.S. Securities and Exchange Commission
show that Tudor is one of Knight's largest investors, sitting
on two million shares in the first quarter, a position that
rivaled institutional holdings by banking giants Mellon
Financial and Wachovia. And probably Tudor's team added a few
shares as the...