The Renaissance Institutional Equities Fund, a $26 billion-plus hedge fund founded by investor James Simons, has recovered significantly from earlier losses, but is still down 1.35 percent in August, a person familiar with the firm said on Monday. The fund, which is managed by Renaissance Technologies Corp, was down 8.7 percent in the month through August 10, raising concerns about the health of one of the largest "quantitative" hedge funds. The fund's returns are now essentially flat for the year through August 17, down 0.06 percent. http://www.reuters.com/article/hotStocksNews/idUSN2029617120070820 James Simons fighting back...ha, ha, ha...
"The month is not over yet. Well, we've always watched things closely, not because of this market. But always." RenTech is doing the same thing they do best at.
I noticed many posters say that FED's action last Friday morning was first and foremost bail-out of hedgies. From story below, that appears suspiciously true. It it were up to me, of course, Simons would have to suffer the same market risk as I suffer. The real rich truly are different from you and me. Just ask the FED.
Not sure how FED action would influence correlation of factor based equity models. I assume it's more likely a reversion to mean after a few funds blew up/were forced to deleverage.