For much more than twenty years, Simons’ Renaissance Technologies hedge fund , which trades in markets about the globe, has employed complicated mathematical models to analyze and execute trades, numerous of them automated. Medallion hasn’t been open to new investors for 12 years, and Mr. Simons, 67 years old, has been returning income to current investors, convinced that returns would endure if the fund got also large. A Renaissance spokesman wouldn’t comment on the new fund, which will be called the Renaissance Institutional Equities Fund. Investors briefed on the new fund say it will differ from the current Medallion hedge fund by aiming for tamer returns that would allow it to manage the greater sums. Wainwright and Renaissance above promised 600 basis points above the S&P 500 per year…at 2/three the threat.
Wainwright Investment Counsel LLC is theoretically responsible for advising Taveras commission on its investments which are then approved by Taveras. According to Wainwright and the City of Providence Renaissance has returned 7.4% annually compared with 6.56% annualized S&P 500 total annualized return more than the exact identical period. Due to a lack of investor interest we have decided to wind down the Renaissance Institutional Futures Fund,” the letter said.
Renaissance Institutional Equities Funds (RIEF), whose net-lengthy investment strategy trades each U.S. and non-U.S. equity securities listed on U.S. exchanges, had a slightly diverse story, but not significantly better: It was up eight.43 % in 2012. Of course, the functionality of Simons’ legendary Medallion Fund, which had been identified to often produce returns of 40 to 80 percent per year net (following Renaissance gets its 5 percent management fee and 44 % performance charge), is a closely guarded secret, and a single that has drawn intense speculation. In August 2005, Simons began Renaissance Institutional Equities Fund, or RIEF, which invests in U.S. stocks.
Renaissance is on fire: Its Medallion Fund – which makes use of computers and trading algorithms to invest in world markets – returned far more than 50 % in the 1st three quarters of 2007. Simons registered that performance as subprime and related markets had been collapsing, sending two mortgage-related hedge funds run by Bear Stearns Cos. Unlike Medallion, which turns more than its holdings dozens of instances each year, RIEF keeps its positions for months or longer.
That development has catapulted Renaissance previous such titans as Daniel Och’s Och-Ziff Capital Management Group LLC, Ray Dalio’s Bridgewater Associates Inc. Aronson credits Renaissance with validating the entire field of quantitative investing and proving that the freedom accorded to hedge fund managers to brief stocks, borrow money and invest in myriad instruments can make outcomes that far outstrip typical marketplace returns. Renaissance Technologies current portfolio contains several high quality dividend growth stocks close to the prime.