Simons, Mandel Post Biggest Drop in Hedge Fund Slump

Discussion in 'Wall St. News' started by ASusilovic, Apr 8, 2008.

  1. Hedge-fund titans James Simons and Stephen Mandel are showing the biggest losses of their careers in the $1.9 trillion industry's worst start in more than a decade.

    Simons's $18 billion Renaissance Institutional Equities Fund declined 12 percent since its value peaked last May, investors with direct knowledge of the situation said. Mandel's Lone Cedar Fund dropped about 10.6 percent from its high in December, according to people familiar with the fund.

    Hedge funds lost an average 2.78 percent of their value in the first quarter, according to data compiled by Chicago-based Hedge Fund Research Inc. The debacle shows the extent to which frigid credit markets, depreciating homes and an economy exhibiting all the signs of a recession are wreaking havoc on even the savviest investors.

    ``This dislocation is so broad based that it's touching a lot of corners of the market that you wouldn't think would have been affected to this extent,'' said Larry Chiarello, director of research at Red Bank, New Jersey-based Riverview Alternative Investment Advisors LLC, which invests in hedge funds.

    Losses haven't been confined to one or two investment strategies. Mandel and Simons approach investing from opposite directions.

    Mandel, 52, picks stocks based on company fundamentals, a skill he learned at Julian Robertson's Tiger Management LLC. He left Tiger in 1997 to start Greenwich, Connecticut-based Lone Pine Capital LLC the following year. Simons's Renaissance Technologies Corp., based in East Setauket, New York, has spent more than 15 years developing computer models that pour through billions of pieces of data to select securities to buy and sell.

    http://www.bloomberg.com/apps/news?pid=20601087&sid=a5R7vjeKPqHA&refer=home

    ....are wreaking havoc on even the savviest investors....OMG, James Simons RenTec is decllining 12 % ! aj, aj, aj...for how many years did he and RenTec outperform benchmarks ?....
     
  2. Uhm Rentec's Institutional Equity Fund was launched when, in Summer of 2005 I believe? So I'd guess outperformance lasted 2 years.
     
  3. Anyone knows Rentec's Medallion fund figures for the last 3-9 months? I guess they should be very good due to recent volatility levels.
     
  4. 2 years ? Others wish they would outperform only one single year....:)
     
  5. Not sure about Q1/2008 returns, but here's a snippet about Medallion's 2007 performance:

    http://www.alphamagazine.com/Article.aspx?ArticleID=1882108&PositionID=116900

    The legend of James Simons grows. In 2007 his flagship Medallion hedge fund returned an almost unheard-of 73 percent, according to sources. And that’s after a fat 5 percent management fee and 44 percent performance fee.
     
  6. I shall bill also 5 / 44....:) I like uneven
    numbers....:D
     
  7. ssss

    ssss

    Stephen Taub

    The legend of James Simons grows.

    The legend of James Simons grows. In 2007 his flagship Medallion hedge fund returned an almost unheard-of 73 percent, according to sources. And that’s after a fat 5 percent management fee and 44 percent performance fee. The return was more than double the fund’s annualized return of about 36 percent since Simons launched it in 1988 and the second-best year ever, after 2000, when it returned 98 percent. Last year the average hedge fund was up a relatively paltry 10.4 percent, according to Chicago-based Hedge Fund Research.
    *********************************************


    annualized return of about 36 percent since Simons launched it in 1988
    that would more as 70% annualized before fees s 1988 .
    It is record ,but suspect that Medallion perfomance was possible through relations to another Rentec funds .

    Medallion is fund with limited entry for empl of Rentec and friends (?)

    http://www.rentec.com/


    Your respectfully
     
  8. Suss----go with a 6/100 fee instead! :p
     
  9. ssss

    ssss

    nazzdack


    Suss----go with a 6/100 fee instead!
    **********************************

    GS pay approx 12 % from profit

    good vp by GS ,30 years -1.5 mln$ per year
    senior partner -35 years -5 mln $ per year

    But for author not possible and no demand .
    Foreign money is alsov foreign problem's ...

    If author would have any client ,which interessed to invest, would simple resend without charge to

    http://www.minerviniprivateaccess.com/
    http://www.markdcook.com/
    http://www.rentec.com/

    Suspect,that are one of the best ...

    ########################################


    For good life in Paris enough 3000-5000 euro per month
    "Quality of life in Paris is not comparable to USA"

    Rene Fleming -Oper singer ,native USA ,today
    resident of Paris


    I.e. -author not have had dream or objective to buy 500 square meter flat in Central park or Fifth Avenue for 20-25 mln $


    Epicur http://en.wikipedia.org/wiki/Epicure
     
  10. Question to anyone in the know -

    How can the medallion fund have a performance fee when it is primarily owned by Simons and his employees? It doesn't seem logical.

    My assumption is that there is no longer a performance fee attached to the fund, while there was when it was open to investors.

     
    #10     Apr 8, 2008