Huge Hedge Fund Bet By Cicilline And Taveras Beneath U.S. Scrutiny

Renaissance Technologies LLC, one of the world’s most successful and secretive hedge fund groups, with roughly $27 billion in assets, is closing an eight-year old, $1 billion portfolio, at the end of the month, according to a letter sent to investors on Tuesday and study to Reuters. Over time, a larger proportion of Medallion could move into the retirement accounts as those grow with out charges and annual taxes. The Renaissance exemption was one of the initial fairly complicated” hedge fund situations, stated Ivan Strasfeld, who ran the Labor Department’s exemptions workplace till early 2012 and was involved in early discussions about Renaissance’s request.

As of 2011, about one hundred of 275 Renaissance workers have been qualified purchasers,” which means they usually had at least $5 million in assets to invest. For Renaissance staff, the final results of the firm’s maneuvers are charge-free, tax-advantaged investments and the prospect of ballooning balances in their Roth IRAs. Renaissance Technologies LLC is a Long Island – New York primarily based hedge fund sponsor, founded in 1982 by mathematician James H. Simons.

The yearly Sharpe Ratio has been recorded at 1.68 and the Medallion Fund had never ever a down year in its history. Mr. Simons received his bachelor of science in Mathematics from the Massachusetts Institute of Technologies in 1958. Renaissance employs mathematical and statistical models for high frequency trading and tries to exploit market place inefficiencies when large transactions take location. The hedge funds managed by RenTech charge five% fixed fee and 44% efficiency fee – one of the highest in the hedge-fund investment planet. As detailed by ValueWalk , at 1 point in time, Renaissance Technologies charged the highest fees of any in the globe.

Like other trader money managers, Medallion aims small pricing anomalies and market place inefficiencies that can support billions of dollars of trading. Nonetheless, RIEF and Renaissance Institutional Futures Fund (RIFF) failed to live up to James Simon’s reputation and assets beneath management dwindled to under $six billion in 2010 from an all time high of $30 billion in 2007. In 2009 Could, the WSJ reported that the SEC was scrutinising RenTech’s book following investors complained of the Medallion Fund consistently outperforming both RIEF and RIFF. This will schedule a job to export all requested 13f holdings data for this filer.

According to a letter to its investors which was reviewed by The Wall Street Journal , Renaissance Chief Economic Officer Mark Silber mentioned there had been dwindling interest in the Institutional Fund given that the firm launched a separate, far more diversified fund three years ago. Many investors preferred the Renaissance Institutional Diversified Alpha Funds, which was set up in 2012 and invested in futures and cash equities. Given that its inception in March 1988, Simons’ flagship $three.three billion Medallion fund, has amassed annual returns of 35.6 %, compared with 17.9 % for the Common & Poor’s 500 index.