james simonsJames
Simons, director of Renaissance Technologies
LLC
Jonathan
Ernst/Reuters

Renaissance Technologies, a secretive quant fund founded by math
whiz James Simons, gave employees the opportunity to increase
their stakes in the firm’s flagship fund by 50% or more after
President Trump’s election — if they could do it in three weeks.

At least six employees took out sizable loans in order to do so,
Bloomberg News’
Miles Weiss reports
.

“Many RenTech staffers were caught off guard when told in early
December that these limits would be significantly raised for the
first time in years,” writes Weiss.

RenTech had $42 billion firmwide hedge fund assets, as of January
1, 2017, according to the Hedge Fund Intelligence Billion Dollar
Club ranking, and has raised at least $2.1 billion since.

Altogether, RenTech’s Medallion fund returned an 11.6%
profit in the first half of this year. 

While the figure isn’t as high as comparable periods from
2015 and 2016 — when the fund saw returns of 18% and 21%,
respectively — RenTech is still beating many of the largest
hedge funds, including Bridgewater Associates and Two Sigma,
which have struggled to post gains this year,
Business Insider earlier reported
.

Renaissance was founded in 1982 and is known for its secrecy. The
company has long held that any cash infusions, like this one,
could have a negative effect on returns. 

During the second quarter of this year, Renaissance’s total
assets rose 9.5% to $78.3 billion, regulatory documents filed
last week show. During the same period, the S&P 500 — a
benchmark for hedge funds — rose just 2.6%.


Read the Bloomberg story here

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