Interesting article. http://www.marketwatch.com/news/sto...FAF-4AD8-B3FD-11BAF5904B41}&siteid=mktw&dist=
i am interested in investing in this one, it is very rare that you get the chance to participate in such a great fund
why is it that there are no hedge fund that have really great returns without such high fees? would not such a fund grow asset wise really fast as people might see that they could net a higher return from such a fund?
They are risking not having enough capacity to maintain the returns they have generated in the past. Thats why they have a $25 million minimum investment, and a 50% performance fee. Someone else to watch is Jim Simons Renaissance fund. He says there is no capacity limit to it, and it can generate 30 +% returns. I'd like to know how that works. He calls it systematic trading, but even that has capacity limits.
Actually his fund Meridian which makes the 30+% returns is kept at around 2.5billion dollars in assets. His NEW fund which will have a 100billion capacity (more or less no limit) will be systematically traded (but with holding periods of months instead of seconds as in Meridian).
100Billion capacity....that is very large indeed. Do you guys know if the 100B fund is equity or what asset class? Anyone know what sort of strategies the Renaissance Meridian fund uses? I have heard/read that it is mostly HFT (high frequency trading) stuff...and from the sounds of a couple of seconds/trade for holding time...must be. Are most of those HFT systems based on statistical arbitrage type stuff? Curious about this new 100B fund too...wonder if it is stat arb? Frankly....i am not always that enamoured with the stat arb stuff...but i dont know enough about HFT and the like to really say yet. LOL...they are obviously doing better than me though
Meridian is HF trading. The new 100Billion fund is more longer term holding for months at a time. Their goal is to provide above market risk with below market volatility (low beta).