Earlier quoted context omitted.
Sure they may lose some great candidates that way, but the reality is that they don't want people in finance because: 1. They have preconceived notions about how finance "should" work 2. People not from finance are driven by other things This is not to say that there aren't people from finance who don't fall under this, but it's a good way to weed them out without inviting a billion applications from people in financ…
So then by your own admission they’re not hiring the best due to this heuristic. One thing my experience in HFT has taught me is that technical ability is only loosely correlated with profitability. So I wouldn't conflate Renaissance's success with their hiring practices.
2. That fun might have these heuristics that GP talks of, and for them, the people they hire may well be the best for them. As in, motivated and attitudinally oriented towards what they want, and more able to work free from the assumptions of _knowing_ how it's done in finance. They may be wrong in your case, but that's how heuristics work. To me, that's less of a bullshit case than trendy languages etc.