Renaissance Gains 8.5% In 2018 After Warning Of "Significant Correction Risk"

Discussion in 'Wall St. News' started by trader99, Jan 6, 2019.

  1. trader99


    In retrospect Hubner was spot on, and nearly one year after making these predictions, Renaissance is reaping the benefits of its cautionary foresight and according to Bloomberg, the Renaissance Institutional Equities Fund, or RIEF, gained 8.5% in 2018, and even after losing 2.1% last month as U.S. stocks broadly plummeted it dramatically outperformed the S&P 500 Index which tumbled 9% in December and generated a total return of 4.4% in 2018.

    Renaissance, which manages $58 billion in assets much of its money belonging to company employees, is the world’s biggest quantitative hedge fund and its outperformance came as most of its peers were whipsawed by volatile markets, resulting in one of its worst years ever for the hedge fund industry.

    RIEF, which unlike the legendary Medallion fund is open to outside investors and manages $27 billion in assets and which trades only U.S.-listed shares, wasn't the only outperformer: another of the company's funds, the Renaissance Institutional Diversified Global Equities Fund, or RIDGE, gained 50bps last month and ended the year with a 10.3% gain. The outperformance of the fund, which follows a market-neutral strategy, is remarkable considering that most other market neutral and systematic funds suffered dramatic losses in December which dragged most of them into the red for the year as we reported last week.
    dealmaker likes this.
  2. Forget about RenTec. The colleagues at RenTec are not bad - but there are even better managers. It must not always be the US centric view, right?

    One of the best performing hedge funds out there in 2018 (and in the last couple of years) it not based in the US but in France - Allegro by H20 (actually regulated in the UK but the team sits in Paris).

    Allegro is a global macro/currency fund - you can find the factsheet for Nov 2018 here:

    +20,8% YTD until end of November 2018. Fund is soft closed for new investments.

    It´s wort to take a look at their long-term performance, too....

    And yes, European hedge funds have outperformed US entities by far last year!

    And yes: Vive la France! (Note: I am not French, but love French food!)
    alex314159, TraDaToR and dealmaker like this.
  3. Stockolio


  4. guru


    Why are you even here when you don’t understand the difference between a hedge fund and mutual fund? And category of funds like under $2B versus over $20B.
    Let’s see if your little French “fund” will be included in any hedge funds performance reports once released, and how it will compare within its own category. The above article has nothing to do with your French “non-hedge fund”.
  5. Palindrome


    It's all about Balls
    TommyR likes this.
  6. fan27


    Palindrome likes this.
  7. sle


    I have not looked at the details, but it looks like a hedge fund like structure (AUM scrape + 20% performance fee) that's wrapped into a share vehicle. And they are doing stuff like "long BTP vs Bund" which is an absolute return strategy (although, it looks like a big portion of the exposure is bond futures basis and currencies).
  8. dealmaker


  9. TommyR


  10. Stockolio


    #10     Jan 13, 2019