Billionaire Hedge Fund Manager Paul Tudor Jones Slashes Tech Holdings and Doubles Down on Gold

The investment world is paying close attention to what’s happening in the portfolios of the ultra-wealthy, and for good reason. When someone manages over $83 billion in assets, their strategic moves often signal broader market trends. Recently, Paul Tudor Jones—a legendary figure in hedge fund management who has run Tudor Investment Corporation for nearly five decades—made a significant portfolio restructuring that reveals much about current economic anxieties.

According to his most recent quarterly filing with the Securities and Exchange Commission (SEC), Jones trimmed positions in tech giants like Apple and Alphabet while dramatically increasing his stake in the SPDR Gold ETF by a substantial 49%. This shift from traditional growth stocks to precious metals reflects a strategic pivot driven by specific macro-economic concerns.

The Economic Forces Driving the Portfolio Shift

Paul Tudor Jones isn’t alone in his concerns. In a 2024 interview with Fortune, the Wall Street veteran warned that the United States was on an unsustainable fiscal trajectory. The numbers tell a compelling story: the federal government ran a $1.8 trillion budget deficit during fiscal 2025, pushing the national debt to an unprecedented $38.5 trillion. With fiscal 2026 projected to see another trillion-dollar deficit, the conditions that prompted this shift show no signs of abating.

Throughout history, governments facing mounting debt have relied on a familiar solution: printing money to devalue their obligations. This “inflation away debt” strategy might sound abstract, but it has concrete consequences for investors. The U.S. abandoned the gold standard in 1971, which historically limited monetary expansion. Since then, the dollar has lost approximately 90% of its purchasing power—a stark illustration of currency depreciation over time.

Gold, by contrast, has maintained its value proposition for millennia. Only 216,265 tons have been mined throughout human history—remarkably scarce compared to 1.7 million tons of silver or billions of tons of common materials like coal and iron ore. This scarcity, combined with its limited industrial applications and its universal recognition as a store of value, explains why investors like Paul Tudor Jones increasingly view it as insurance against currency erosion.

Gold’s Explosive Rally and Its Sustainability

The numbers speak for themselves: the SPDR Gold ETF surged 64% in 2025 and has already climbed over 20% through early 2026. The precious metal recently achieved a historic milestone, crossing $5,000 per ounce for the first time ever. This rally reflects growing investor anxiety about political and economic uncertainty, as cash flows into gold accelerate.

However, investors should temper their expectations about continued explosive returns. While a billionaire’s investment decisions carry weight, gold’s historical performance tells a different story. Over the past three decades, the metal has delivered an average annual return of roughly 8%—notably underperforming the S&P 500 index, which has climbed approximately 10.7% annually over the same period.

More revealing is gold’s recent history: the decade spanning 2011 through 2020 saw the precious metal essentially deliver flat returns, while equities more than doubled. Significant price spikes often precede prolonged periods of consolidation. This cyclical pattern suggests that while the current momentum is real, sustained annual returns exceeding 60% remain highly unlikely.

That said, the conditions supporting gold prices persist. Continued government deficit spending, expansionary monetary policy, and lingering economic uncertainty will likely provide a tailwind for precious metals throughout 2026. The question isn’t whether gold belongs in a portfolio, but rather in what proportion.

A Practical Approach to Gold Exposure

For investors seeking gold exposure without the complications of physical ownership, the SPDR Gold ETF offers a compelling alternative. Storing and insuring physical bullion can be expensive and burdensome, whereas this fund eliminates those hassles. With $172 billion in physical gold reserves backing the fund, investors can be confident in its ability to accurately track spot prices.

The ETF does carry an annual expense ratio of 0.4%—meaning a $10,000 investment incurs approximately $40 in yearly fees. While this seems modest, it’s worth comparing against the tangible costs of safeguarding physical metal. For most investors, the convenience and liquidity of an ETF likely justify the fee.

Sizing Your Position Wisely

The investment playbook suggested by major market participants like Paul Tudor Jones isn’t one of maximum allocation. Instead, it demonstrates the value of strategic diversification. While gold positions deserve a place in portfolios—particularly given macroeconomic headwinds—they should typically represent a modest portion of overall holdings.

History suggests that favoring income-producing assets, particularly equities with strong fundamentals, remains a sound long-term strategy. The billionaire investor’s recent pivot toward gold doesn’t invalidate equity markets; rather, it acknowledges that a multi-asset approach can help navigate periods of heightened uncertainty.

Ultimately, the takeaway from observing how sophisticated investors allocate capital is this: don’t chase performance, maintain diversification, and position your portfolio for multiple scenarios. Whether you follow Paul Tudor Jones into gold or pursue your own investment thesis, disciplined position sizing and a long-term perspective remain your most reliable tools for building wealth.