How A Hedge Fund Reacts To A Hurricane: Trade Weather Derivatives!

Business Insider – While others were stockpiling water, flashlights, and board games in preparation for Hurricane Irene, the hedge fund Tudor Investment was crunching numbers. Paul Tudor Jones’ investment firm employs a weather derivatives analyst.

Weather derivatives are fairly new, the first one traded in 1997 and the CME introduced the first exchange-traded weather futures contracts in 1999.

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