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Are Renaissance Technologies just trend followers?


RuleNumberOne

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I tried looking for an article on Medallion fund but haven't found it. I think it came out last year in case anyone knows what I am talking about they can post it. From my memory, the article explained how the Medallion fund operates (vaguely as much of it is proprietary) much like a casino, placing millions of small trades every day on both sides. That way market moves are somewhat irrelevant and they take a daily vig. Investments never last longer than 2 weeks.

 

I thought it was generally assumed that a lot of Medallions profits was from market-making and arbitrage? Like Buffets early years when he could use merger-arbitrage to juice returns.

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Another article on Rentech: https://markets.businessinsider.com/news/stocks/jim-simons-renaissance-technologies-rentech-5-billion-client-redemptions-2021-2-1030055185

 

<i>RenTech's investors are pulling their money after the firm's international equities fund lost 19% in 2020, its institutional diversified alpha fund tumbled 32% over the same period, and its institutional diversified global equities fund slumped 31%.

.......

 

In contrast, the firm's flagship Medallion fund - which is only open to owners, employees, and their families - gained 76% last year, Institutional Investor reported last month.</i>

 

 

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Another article on Rentech: https://markets.businessinsider.com/news/stocks/jim-simons-renaissance-technologies-rentech-5-billion-client-redemptions-2021-2-1030055185

 

<i>RenTech's investors are pulling their money after the firm's international equities fund lost 19% in 2020, its institutional diversified alpha fund tumbled 32% over the same period, and its institutional diversified global equities fund slumped 31%.

.......

 

In contrast, the firm's flagship Medallion fund - which is only open to owners, employees, and their families - gained 76% last year, Institutional Investor reported last month.</i>

 

This is like LOLZ wtfpwn stupid outside money dudes...  ::)

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Seems a little extra fishy that the thesis of scrambling together a bunch of technical standouts can produce gravity defying results falls apart so badly as soon as it opens up to a little scrutiny.

 

Rentech, the kind of fund that can't take a leak if you're looking...

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Another article on Rentech: https://markets.businessinsider.com/news/stocks/jim-simons-renaissance-technologies-rentech-5-billion-client-redemptions-2021-2-1030055185

 

<i>RenTech's investors are pulling their money after the firm's international equities fund lost 19% in 2020, its institutional diversified alpha fund tumbled 32% over the same period, and its institutional diversified global equities fund slumped 31%.

.......

 

In contrast, the firm's flagship Medallion fund - which is only open to owners, employees, and their families - gained 76% last year, Institutional Investor reported last month.</i>

 

This is like LOLZ wtfpwn stupid outside money dudes...  ::)

 

Maybe these outside money funds are just sacrificial lambs to feed the employee owned beast?

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One of the guests on Grant William's podcast about GME and short selling claimed that RenTech returns are all about employed leverage and they are not doing anything unique. I don't believe he cited any data to back this up but it was the first time I had heard that claim.

 

Actually I guess the start of this thread was basically that claim, whoops.

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