121–130 of 338 posts
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IIRC his fund averaged around 30% gains per year, every year, over 30 years. (I'm going from memory here, too lazy to look it up). That is just such an unbelievable performance number.
Aren't there some shenanigans with those numbers around their larger funds not doing as well? It's easy to make a few high margin dollars, hard to make a lot of high margin dollars.
RenTech is a CIA front company
https://twitter.com/quant_arb/status/1631052354408665091?lan...
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His whole RenTech story was fascinating. Effectively an outsider in finance who gathered a bunch of other outsiders (aka big mathematicians), and decided to start a hedge fund that takes zero interest in the actual companies and trades solely on math. Which makes sense, since none of the main people involved in its creation had any corporate or finance experience, but tons of math experience and knowledge. This is ov…
Yep, not argument here at all, RenTech is a super fascinating outlier in finance. It's kind of inspiring. I don't know a ton about finance or trading algorithms, but I know a fair bit (I think) about math and CS, and because of RenTech I've formulating my own trading strategies (just paper trades). Thus far all I've been able to do is lose all my pretend money by trying to play options, but it's still fun to try. Wil…
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It's truly inspiring that they've been able to keep their headcount low over a long period of spectacular success. Most organizations would have choked themselves on tens of thousands of bad hires long ago.
That's one thing I find interesting about hedge funds and (some, not all) finance organizations: their ability to make huge amounts of money with small staffs. IIRC RenTech's revenue per employee is something entirely absurd, in the millions.
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I'm not blaming Simons, I am blaming the people I worked for when I worked at arXiv who, again, took a decade to start looking for sustainable funding.
While this thread is by no means as formal of an event. Picture yourself at someones memorial service, before/during/after the service you bring up a topic that is orthogonal to the person's life and frames it about yourself instead of the person being memorialized. Its just a bit weird.
RIP
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I'd still wish to have details on this (I too heard of similar numbers for his fund before), because in my newb eyes .. such returns would mean they could absorb a huge chunk of the planet liquidity.
No, because such returns aren't scalable. According to industry rumors, RenTech is somewhere between $10-20bn AUM (assets under management, i.e. the capital used for trading), and the profit that they make, they can't reinvest, they have to take it out as profit.
I know literally zero about this stuff!