Jim Simons: A Rare Interview

[dcollon]

I apologize if this has already been posted, but I couldn't find it via search.

 

[Gardener]

I hadn't seen it yet, thanks for the share!

[Liberty]

Hour long interview:

 

 

Short version:

[dcollon]

Thanks Liberty

[Pauly]

Really interesting guy, but there is zero I can learn about investing from him...

 

Step 1: Be a math genius

 

...well I'm out.

 

[jobyts]

Interesting. I didn't know rich mathematicians exists!!  ;D

 

A joke I  tell my math major friends:

 

Q. What's the difference between a Math PHD and a medium size pizza?

A. A medium size pizza can feed a family of four.

[Travis Wiedower]

Really interesting guy, but there is zero I can learn about investing from him...

 

Step 1: Be a math genius

 

...well I'm out.

 

 

A big part of investing is understanding how the world works and all the companies and players in it. Charlie Munger talks about this a lot with his mental models. It's important to spend time learning about a wide variety of people and businesses that may not have a direct impact on investment returns. Those things can help you understand one more small piece of the world which is ultimately a positive. And learning about extremely successful people can never hurt.

[Liberty]

Good feature article on the Medallion fund and Renaissance:

 

http://www.bloomberg.com/news/articles/2016-11-21/how-renaissance-s-medallion-fund-became-finance-s-blackest-box

 

[dcollon]

Great article.  Thanks Liberty

[merkhet]

Maybe I'm biased because I'm currently reading When Genius Failed, but I wonder how much leverage RenTech is putting on...

[hillfronter83]

Maybe I'm biased because I'm currently reading When Genius Failed, but I wonder how much leverage RenTech is putting on...

 

The article said 4-5 times for equity group. I believe LTCM's leverage was in 20s.

[merkhet]

Maybe I'm biased because I'm currently reading When Genius Failed, but I wonder how much leverage RenTech is putting on...

 

The article said 4-5 times for equity group. I believe LTCM's leverage was in 20s.

 

Thats 4-5 times for the capital, but the capital is invested in derivatives that have their own leverage, right?

[doughishere]

Maybe I'm biased because I'm currently reading When Genius Failed, but I wonder how much leverage RenTech is putting on...

 

The article said 4-5 times for equity group. I believe LTCM's leverage was in 20s.

 

Thats 4-5 times for the capital, but the capital is invested in derivatives that have their own leverage, right?

 

Like a derivative Inception?

[TwoCitiesCapital]

Maybe I'm biased because I'm currently reading When Genius Failed, but I wonder how much leverage RenTech is putting on...

 

The article said 4-5 times for equity group. I believe LTCM's leverage was in 20s.

 

Thats 4-5 times for the capital, but the capital is invested in derivatives that have their own leverage, right?

 

Like a derivative Inception?

 

Lol - like using margin to purchase options. Leverage on Leverage.

[vox]

There was a Senate investigation into RenTech's use of options to avoid tax payments which found that leverage could go up to 17:1.

 

http://dealbook.nytimes.com/2014/07/22/renaissance-hedge-fund-chief-defends-use-of-basket-options/?_php=true&_type=blogs&_r=0

 

 

[Liberty]

More Simons :

 

http://www.nytimes.com/2016/11/22/science/james-simonss-foundation-starts-new-institute-for-computing-big-data.html

[Jurgis]

More Simons :

 

http://www.nytimes.com/2016/11/22/science/james-simonss-foundation-starts-new-institute-for-computing-big-data.html

 

Might be interesting place to work for. :)