Renaissance Technologies
From Free net encyclopedia
Renaissance Technologies is a hedge fund mangement company. Renaissance was started by Jim Simons in 1982. Its $5 billion Medallion Fund has averaged 35% annual returns, after fees, since 1989, and is considered in the industry to be the most successful hedge fund, yielding returns ten percentage points higher than legendary investors Bruce Kovner, George Soros, or Paul Tudor Jones.[1] Because it is so successful, it charges a 5% management fee and a 44% incentive fee. Extremely secretive, the company operates out of a mini-campus on Long Island, New York. Administrative functions are handled out of offices in Manhattan.
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Scientifically based investment strategy
For over two decades, Renaissance has been at the forefront of research in mathematics and economic analysis. Renaissance employs more than 60 top scientific specialists, including mathematicians, physicists, astrophysicists and statisticians, who review market data to find statistical relationships that predict the price movements of commodities, currencies and stocks.
Renaissance uses computer-based models to predict price changes in easily-traded financial instruments. These models are based on analyzing as much data as can be gathered, then looking for non-random movements to make predictions. Renaissance represents a validation of the quantitative trading model and trades with such high-frequency that it accounts for 10% of all the trades occuring on NASDAQ some days.
What lies ahead
Renaissance is currently gearing up to launch a fund designed to handle upwards of $100 billion, one that could become the industry's largest.
See also
External links
- Hoovers.com - 'Renaissance Technologies Corporation' (corporate profile)
- IHES.fr - 'Jim Simons' (profile)
- SARNet.org - 'Titan's Millions Stir Up Research Into Autism: James Simons Taps Big Stars From Outside Field to Find A Genetic Explanation', Antonio Regalado, Wall Street Journal
- TurtleTrader.com - 'Jim Simons: Renaissance Technologies Corp.'