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,
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%.