tar
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Inside a Moneymaking Machine Like No Other
The Medallion Fund, an employees-only offering for the quants at Renaissance Technologies, is the blackest box in all of finance.
https://www.bloomberg.com/news/arti...-medallion-fund-became-finance-s-blackest-box
Good article ...
"No system lasts forever, say quants."
"The goal of quant trading is similar: to build models that find signals hidden in the noise of the markets. Often they’re just whispers, yet they’ll help predict how the price of a stock or a bond or a barrel of oil might move."
"Fees were also ratcheted up—from 5 percent of assets and 20 percent of profits, to 5 percent and 44 percent. “They raised their fees to exorbitant levels and were still head and shoulders above everyone else,” says Bonnefoy,
who, along with every other outsider, was finally booted from Medallion in 2005."
"The investment paid off. Today the equities group accounts for the majority of Medallion’s profits, primarily using derivatives and leverage of four to five times its capital, according to documents filed with the U.S. Department of Labor. 4"
"Medallion was already producing annual returns, after fees, of at least 30 percent almost exclusively from futures trading. In the early days, anomalies were easy to spot and exploit. A Renaissance scientist noted that Standard & Poor’s options and futures closing times were 15 minutes apart, a detail he turned into a profit engine for a time, one former investor says."
"But as financial sophistication grew and more quants plied their craft at decoding markets, the inefficiencies began disappearing"
The Medallion Fund, an employees-only offering for the quants at Renaissance Technologies, is the blackest box in all of finance.
https://www.bloomberg.com/news/arti...-medallion-fund-became-finance-s-blackest-box
Good article ...
"No system lasts forever, say quants."
"The goal of quant trading is similar: to build models that find signals hidden in the noise of the markets. Often they’re just whispers, yet they’ll help predict how the price of a stock or a bond or a barrel of oil might move."
"Fees were also ratcheted up—from 5 percent of assets and 20 percent of profits, to 5 percent and 44 percent. “They raised their fees to exorbitant levels and were still head and shoulders above everyone else,” says Bonnefoy,
who, along with every other outsider, was finally booted from Medallion in 2005."
"The investment paid off. Today the equities group accounts for the majority of Medallion’s profits, primarily using derivatives and leverage of four to five times its capital, according to documents filed with the U.S. Department of Labor. 4"
"Medallion was already producing annual returns, after fees, of at least 30 percent almost exclusively from futures trading. In the early days, anomalies were easy to spot and exploit. A Renaissance scientist noted that Standard & Poor’s options and futures closing times were 15 minutes apart, a detail he turned into a profit engine for a time, one former investor says."
"But as financial sophistication grew and more quants plied their craft at decoding markets, the inefficiencies began disappearing"
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tar
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" Prospective investors clamored to get into Medallion, but the company didn’t pay them much heed—or coddle clients for that matter. Bonnefoy recalls dialing a Manhattan phone number to hear a recording of the monthly returns; Renaissance’s legal department doubled as unhelpful customer service representatives. (To this day the company’s website, rentec.com, looks like it dates from the Netscape era.) In 1993, Renaissance stopped accepting new money from outsiders. Fees were also ratcheted up—from 5 percent of assets and 20 percent of profits, to 5 percent and 44 percent. “They raised their fees to exorbitant levels and were still head and shoulders above everyone else,” says Bonnefoy, who, along with every other outsider, was finally booted from Medallion in 2005. "
Thats important , they didn't care about getting investors why because they have a real edge , a money making machine .
Thats important , they didn't care about getting investors why because they have a real edge , a money making machine .
