$100B hedge fund

Very interesting thread. Thanks for the links to papers, they will occupy me for a while.

 

Olsen's primary business always has been data. Their tick database is one of the most comprehensive in the world because they were the first guys to start collecting high freq data in currencies (and now collect data on pretty much everything). They got hit badly during Hurricane Katrina but they have updated their risk models and infrastructure which should prepare them for future events of that nature.

And as for Renaissance's success> Well there really is no question what he should or shouldn't do. The question should be how we can emulate him.

And I have never heard of them using astrologers. Astrophysicists are a completely different professions than astrology. Their skillset is applicable because they also analyze mountains of information to find patterns. I believe a group of astrologists founded the firm Financial Labs. I wouldn't be surprised if there were astrologists are Renaissance but it is quite safe to say that they are not trading on a "strategy is based on ancient astrology as revealed in ancient texts."

 

does anybody know how renaissance is doing this year ?

 

And in particular their $100B fund?

 

$100 billion?

Man I would put it all in treasuries and tell my investors I am doing special bond trading. At the end of the year when the fund is only up 5% I talk about how difficult it was trading bonds yada yada yada/

At 1% management fee that is $1 Billion. I will then apologize for the poor performance if the market was up a lot that year and close the fund and pocket a billion. If the market is down that year I will applaud my market beating performance and keep it up one mroe year for another billion...

I wonder if this is how Soros did it lol

 

Expense ratios for bond funds are very low. But a very low % of a huge sum of money is still a lot of $.


nitro

 

.25% is still $250,000,000 lol...... Of course you need to raise $100 billion but once you do..... risk-free $250,000,000

 

Sounds like a plan.

Can I be your head "trader?" I'll only charge 0.25% AUM.

I promise, no losing years!

 

Tell you what, you get me the $100 billion and I will split the fees lol

 

I had the pleasure of attending a meeting with one of their directors last week. Their RIEF (Renaissance Institutional Equities Fund) is doing pretty well... 19% net of fees over the last 12 months.