Renaissance Technologies is one of the most profitable hedge funds of all time. In a year of exceptional volatility and marketplace dislocations, the fund is up 64 percent via September. Hedge fund manager Jeffrey Vinik closed his fund last month following compiling average annual returns of 53 percent given that November 1996. In 1997 he folded a middling marketplace-neutral fund into Medallion following just 3 years. And a mortgage-backed-derivatives fund he backed in 1995 swooned soon after enjoying two fine years. In 1978 he left Stony Brook totally, to kind a private investment fund called Limroy.
Simons has recently raised a $200 million fund to extend Renaissance’s attain into technology venture capital investments. Back in action, Medallion created its mark through rapid, quick-term trading across futures markets. By 1993, after three dazzling years, Medallion had reached $270 million in assets and stopped taking new income. In component, the fund was looking for new ways to invest excess capital that investors didn’t want back.
By 1994 Renaissance, which had began with 12 staff, had 36 on employees, and Medallion was trading 40 types of securities, up from 12. Renaissance had often completed all of its trading via outdoors brokers the following year it opened its very first in-residence trading operation. These days Renaissance has 140 staffers – it plans to be up to 150 by year-end – and trades 60 diverse economic instruments about the clock. Three years ago Medallion formed an internal fund-of-funds to invest in outside managers.
Simons also believed the strategy would boost Renaissance’s market place intelligence and sometimes present possibilities for Renaissance to obtain yet another fund. Medallion now has $500 million invested in 40 outdoors funds, which includes macro manager Louis Bacon’s Moore Capital Management. Renaissance moved into its East Setauker headquarters 3 years ago, but Simons and the firm retain close ties to the university.
By contrast, Simons has taken his scientists away from Wall Street, to lavish surroundings in Lengthy Island, not far from the Stony Brook campus where Renaissance began life in workplace space developed to serve as a company incubator. Renaissance headquarters function a health club, lighted tennis courts, a library with a fireplace and big private offices for each employee.… Read the rest