I keep hearing about the returns this closed to the public fund generates a year regardless of market conditions. Returns of 30-40 percent a year consistently. Ie. straight line return. Yet has anyone actually seen an independent confirmation? Since I could easily say I have a secret fund that no one can see but make similar claims. Something does not add up.
Jim Simon and his super fund? It's the closest thing to a black box golden goose. It's tough to try and hide a ponzi scheme ala Madoff if the the guy makes billions each year. That fact that he shut off his fund to outside investors says a lot. I do remember some articles trying to crack his secret. They weren't definitive but suggested he was legit.
I do not think its a Ponzi. But the returns, who has actually verified them other than the rumors? What is the source of these perfect straight line HYIP 30-40% annual returns? for the Medallion fund?
I do think it's a Ponzi. RIEF does very poorly and Medallion produces double digit gains? The draw of the closed fund leads to a massive futures fund in which the management fee funds the Ponzi.
But the Medallion Fund is only open to employees not outside investors. and Jim Simons apparently has a big personal stake in it. So it would not make sense if it was a ponzi. But you are right, the discrepancy in the returns between the RIEF and Medallion is quite suspect. The only thing I can thing is the Medallion fund returns are BS and are just to give Jim an aura of Invincibility/Genius for Marketing purposes. (ie attract money to the public funds) hoping he will throw them a bone or two
Well yeah, I think it's fraud. BS the internal performance to drive the notional AUM in the external fund to receive the mgmt fees. It could be a Ponzi if few in Medallion knew/know about the falsified perf and are receiving appreesh on phony numbers.
Pretty simple way to debunk Simon. Find out what he paid in taxes. Even if he tried to shelter all that money, the enormity would prove he was legit. The telltale sign is if he doesn't show the big numbers. While we may not have access to his finances, I would think the SEC or the gov would be able to confirm.
http://www.dailyfinance.com/2009/05/15/sec-looking-into-james-simons-secrets/ http://www.streetinsider.com/Inside...A+Bad+Move+And+Recommends+Madoff/4436235.html :eek:
If you passionately express your scorn and contempt to Simon directly, he might feel compelled and shamed enough to show proof of "the numbers".