Renaissance Technologies Moving Into Futures

Discussion in 'Wall St. News' started by Maverick74, Jul 5, 2007.

  1. Maverick74


    Renaissance to launch new fund

    Renaissance Technologies, one of the world's biggest and best performing hedge fund groups, plans to launch a managed futures fund with a capacity of $25bn, an unusual foray into an investment strategy that has been underperforming.

    Renaissance was founded by former maths professor James Simons, last year the world's most highly paid hedge fund manager, earning $1.7bn.

    The group's flagship $6bn Medallion fund, which trades in a lot of futures, has been quickly overtaken in growth by its newer Renaissance Institutional Equities Fund, which was launched two years ago and trades only in stocks. The Institutional fund, which was designed to hold $100bn, already manages $26bn. It charges much lower fees than Medallion's notoriously high 44 per cent performance fee, and was designed to provide lower volatility and a lower trading turnover, appealing to pension funds.

    Investors in Medallion last year received returns of more than 40 per cent, and investors in the institutional fund received more than 20 per cent, after fees. The Medallion fund now contains mostly Mr Simons' own money and that of Renaissance employees.

    Managed futures, a type of hedge fund strategy that was originally commodity trading, traditionally works best at times of high market volatility because it arbitrages tiny price differences. Managed futures funds have not performed as well as other strategies in the past few years because markets have had low volatility.

    In the year to date, managed futures funds returned an average of 4.2 per cent, compared with 8.9 per cent for hedge funds in total, according to the Credit Suisse/Tremont hedge fund index. There have been few such new funds launched recently.

    Like most of the largest hedge fund firms, Renaissance is a quantitative investor, developing complex mathematical models for its trading strategies. Mr Simons has said that his group hires no-one from Wall Street, but instead seeks out astronomers, mathematicians and physicists.

    Copyright 2007 Financial Times
  2. this guy is worth so much money its embarrassing.

    why does he not just fuck off out the markets.

    he does not contribute anything anymore.

    he pays fuck all tax with his money parked offshore in some cayman island trust fund.

    he employs very few people.

    its all done by machines.

    he has personally made billions out of these markets and its not enough.

    whats the matter with him.

    he won its simple.

    what good is another 1,2,3,4,5,6,7,8,9, billion going to make.

    its just sheer greed.

    please exit stage left my friend.
  3. KS96


    astronomers or astrologers?

  4. this is one of the big problems with these people.

    like ltcm , they are so convinced they are right that when the time comes to bail out of shit positions they cant pull the trigger.

    most traders including myself just know when its time to get out.

    these guys have not got any traders to tell them their trades might be a wrongun.

    they just keep averaging in until the fed bails them out.
  5. On the first hand your jealousy is making you highly emotional about a man you dont even know.

    And on the second hand James Simmons has contributed the equivalent of several small countries GDP to autism research. Which is an epidemic in the USA if you weren't aware.
  6. Nothing can stop Simons. These guys will be bigger MMs than the dealer banks wherever they go - if they aren't already. That's what I took away from an interesting New Yorker HF article this week on a cranky Dutchman named Harry Cut.
  7. LOFL! Dude, you're either a troll or the biggest fucking douche around.

    Oh, if only Simons could be like YOU, how much better off he would be!

  8. Sounds like a plan. This would be another of those "edges" wishful-thinking traders hope to find.

    Just goes to show, that if your pockets are deep enough....
  9. RenTec is the market. They are on the other side of most everybody here.
  10. Everyone needs a hobby, do you really think these guys are in it for the money? Sheer love of the game my friend I doubt you will see any exotic car > 100k parked at Renaissance. He basically hired a bunch of geeks who love doing what they do.
    #10     Jul 6, 2007