RenTec On Fire!

http://www.nypost.com/p/news/business/rentec_fund_has_rebirth_2zTo4cZGpjEFBIYE7gVBeK?CMP=OTC-rss

What a beast. Destroying the market with 1/3rd the volatility. Medallion doing the same. The folks at Renaissance would like to thank ET for taking the other side of their trades.

RenTec fund has rebirth

By KAJA WHITEHOUSE

Last Updated: 11:45 PM, November 3, 2011

Posted: 11:45 PM, November 3, 2011
Renaissance Technologies, the super-secretive $19 billion hedge fund started by math whiz Jim Simons, is doing just fine without its founder.

Almost two years after Simons stepped back from day-to-day operations, the firm’s most troubled fund, the Renaissance Institutional Equities Fund, is staging a major comeback.

RIEF, with assets of $6.1 billion, is up 31 percent this year, notching returns of nearly 5 percent last month, sources said.

Equally impressive in a roller-coaster market, the fund’s volatility is just one-third that of the Standard & Poor’s 500 index, one source said.

A spokesman for RenTec declined to comment.

Simons, a former math professor who regularly makes Forbes’ billionaire list, launched RIEF in 2005 with dreams of growing it to a whopping $100 billion in assets.

Instead, the fund struggled with disappointing returns starting in 2007, when assets dropped from $28 billion to just $3.9 billion in June 2010.

Now, after Simons stepped aside, RIEF is taking off while the S&P is flat and the average hedge fund is in negative territory.

Ironically, the stellar returns finally place RIEF in the same rank as its older, more famous fund sibling, the Medallion fund, which is up 32 percent this year net of fees, one investor said.

Read more: http://www.nypost.com/p/news/business/rentec_fund_has_rebirth_2zTo4cZGpjEFBIYE7gVBeK#ixzz1ckZWluPA

 

Guess what kind of returns are possible with smaller assets, below $1B.
Over 50% a year, without a problem, magic, luck or insider news.

Almost nobody can make it. Why? Cause their strategies suck and blow big time.

 

In a press release this morning, Simons said these returns simply could not be possible without the liquidity from the ET community. His investors thank all of you for your support.

 

I thought everyone here made a lot of money and traded fulltime from a prop shop or from their home offices in their lavish houses.

RenTech should be trolling this board for employees.

 

This is a good one.

Making such high returns with multi billion AUM is formidable. Especially Medallion.

 

And all this time I thought Goldman Sachs was taking the other side of my trades.

 

lol...

RenTec's returns aren't exceptional compared to their resources. They've hundreds of Phd scientist and the best minds and they're only able to do what 30% to 50%.. one would think they'd be doing 1000% if intelligence had anything to do with trading.

I understand they have billions under management but the returns aren't that exceptional.

And there is no word on the risks they took.. So we don't know what the risk adjusted returns are. They might be more much more impressive but impossible to say. At any rate, I can guarantee you that 100 Phd's in any other field have a much more impressive record then in trading.

 

Umm...yeah. Whatever you say.

I'd settle being that lackluster.

 

From 28 to 6.1!! what kind of shit-head are these PhDs?

I say the fund manager is a moron.

 

To give em there dues... they probably did it ultra diversified and without taking a lot of risk which is pretty impressive.

I imagine high frequency arbitrage...