Jim Simons Proved the Textbooks Wrong — Almost
The genius math professor who ran Renaissance Technologies figured out how to reliably beat the market, but the rules still apply to everyone else.
Hasnain says:
“That combination of personnel roster and management culture was simply smarter than the market. From 1988 through 2018, Renaissance’s flagship Medallion Fund had an average annual return of about 40% after fees, with almost no money-losing years; before fees, its returns were even more eye-popping. Although Medallion’s trading strategies do eventually get discovered by the market, forcing the company to find and exploit new inefficiencies, their profitability tends to last for decades rather than mere months. That steady outperformance has earned Simons an estimated fortune of $22.9 billion, according to the Bloomberg Billionaires Index.”
Posted on 2021-01-19T04:42:34+0000