[..]Renaissance is on fire: Its Medallion Fund -- which uses computers and trading algorithms to invest in world markets -- returned more than 50 percent in the first three quarters of 2007. It had about $6 billion in assets as of July 1. Simons registered that performance as subprime and related markets were collapsing, sending two mortgage-related hedge funds run by Bear Stearns Cos. into bankruptcy. The turmoil pummeled the Goldman Sachs Global Alpha Fund, a rival to Renaissance's funds, which fell more than 25 percent during the same time. Morgan Stanley's computer jockeys lost $390 million in a single day in early August. [...] In August 2005, Simons started Renaissance Institutional Equities Fund, or RIEF, which invests in U.S. stocks. Through Sept. 30, it has returned 12.8 percent annualized. Unlike Medallion, which turns over its holdings dozens of times each year, RIEF keeps its positions for months or longer. Simons said at the time of the fund's inception RIEF could theoretically manage as much as $100 billion.
im unsurprised. these guys are legendary in their approach and trading styles. they are the reason everybody finds the market harder as we get older. they are a cut above the rest.
Was so funny to read all those dumba** journalists mixing up Medaillon and REIF during the August rout.
Kinda funny, when you are doing your quarterly performance review, pat yourself on the back and then have a glass of wine you read something like this http://www.ft.com/cms/s/0/7b6160be-9b80-11dc-8aad-0000779fd2ac.html
Cygnus Atratus = black swan = is a large-impact, hard-to-predict, and rare event beyond the realm of normal expectations....1000 % seems to be one of these hard-to-predict scenarios, isn´t it ?
http://www.bloomberg.com/apps/news?pid=20601109&sid=aq33M3X795vQ&refer=exclusive "Simons at Renaissance Cracks Code, Doubling Assets"
inspiration for those of us building quant systems... It can be done and has been done - with numbers!
Simmons has about 30 phds working for him and countless developers, so being a successful quant is quite expensive.
Imagine Google would start a hedge fund with all their PHD's. We could all go back to flipping burgers!