Excellent Interview - the GOAT of Hedge Funds! They automated their data processing pipeline such that they are able to rapidly back test strategies. They also have arbitrage in the order book with market making (this was revealed in a suit between former employees). Also using basket options with Deutsche and Barclays saved them $6.8bn in taxes over a 15 year period. Overall Simons is just a genius.
First time I see the old Compound video production (I am well familiar with Josh and his solo podcasts but never seen Batnick and Josh on set in “interview” mode. TCAF has really come a long way 💪🏾
Great book. Pity that Simons wouldn't let them disclose a little more about the actual techniques. But hey, that's Renaissance Tech. Secrecy was paramount. p.s. if they 'did' manage to do a film about this amazing story, the only actor to play Simons has to be Frank Langella - they're almost identical twins.
It's a light read that, expectedly, reveals very little. It is more a collection of stories about many of the different people, keyword people, that built the company over its history.
@Raymond Spicer I think your the one probably crying that people don't agree with whatever warped worldview you hold. I'm sure its a funny topic for the rest of your family on holidays unless they are divorced from reality as well.
The whole hedge fund industry is a laughable fucking joke .. Why charge a 1% , 2% , 5% management fee at all ? If you can’t make your clients money , why should they be able to make money on these fees ? When they charge these management fees , they are already getting paid regardless of how the investment turns out , so there is ZERO incentive for the hedge fund to make clients any money ..
Greg's book was an IMPULSIVE BUY when it was my FIRST TIME travelling on a flight, all blame/thanks to this interview. Great book, must say. I had a marathon read and finished it in 2 days. STRAIGHT
@@TheCompoundNews Now that you ve replied, lemme tell u, I wanted to be an Financial Engineer; just so I can get involved with quants. Post some research, and 6 months later; came to know my biz degree wont work; so I am doing Masters in Finance in SJSU & I am coming fall 22. Great Job, guys
JB & MB... Well done interview as always. I look forward to reading Zuckerman's new book. 66% annually since the late 80's? Phenomenal and kinda scary!
So the really good, successful hedge funds give you your money back even if you don’t want your money back and all you’re left with are the bad and unproven hedge funds trying to get your money. What a predatory, asymmetrical relationship. JoM
And what have these clowns produced? What have they invented to help humanity? What great discoveries! ZERO. Nothing at all just how to get rich nothing more tell how are these great men?
Ed Thorp was friends with Claude Shannon the "Father of Information Theory" and they worked together making the first wearable computer tech.winton.com/2018/07/ed-thorp-claude-shannon/
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Jim Simons and Ren Tech story is the most inspirational ever!! You start by trading with few dollars, you try to automate those trades and 3 decades later, you're substantially influencing who becomes the president of the USA!!
Hi guys, First of all, great video and great interview. Second, sure its debatable whether Jim is the greatest investor/trader of all time, but why do you say Buffett doesnt compare in terms of returns? Of course Buffett doesnt have 66% return on average, but he certainly did pull more than 100 billions out of the market. Or am I wrong? Additionally, Buffett manages around 400 billions, which it makes harder to get a 66% of return compared with Medallion Fund which is capped with 10 billions. Let me know your thoughts. Thanks in advance.
They do not hold anything for more than a few minutes to two weeks max. Only their other/public fund holds longer-term but doesn’t have amazing returns.
? You not that dull....its not their holdings thats the sauce but their implementation.....Entry, Exit, Filter....the instrument matters little apart from sufficient liquidity
Their medallion fund is not operated by human traders and thus it has no “holdings”. Its algorithms trade a basket option that contains a variety of financial products.
Zuckerman's book on Jim Simons is awesome. Another must read book is A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market by Ed Thorp. Thorp is on the same level as Jim Simons.
This is besides the point, but if I were Czar of the Russians. I would prefer if all these PhD's hired at Renaissance would have built things; medicine, technologies, government, and engineering stuff. It is a cool story.
That’s actually good point because these guys create nothing and they cost the rest of us money. They contribute nothing to society whatsoever. They make themselves rich by essentially becoming an extra layer of costs in the buying and selling of stocks that WE pay for. These are not people to be praised
@@jefffawcett I agree with you, that is why I like people like Drunkenmiller, who has billionaire and successful acknowledges he gets paid multiples more than what he contributes to society. I also agree with the first person who is thankful we don't have Czars telling people what to do, but a little razing doesn't hurt.
The Medallion was remarkable, these same Renaissance guys could not create another fund like this. Outside money was kicked out in 2006 after years of forced redemptions. They closed to taking new money in June 1993
I've been earning from the stock market for a long time now and i still wonder why i keep hearing people say the stock market is not a good place to invest your money
Forex and Stocks are the most profitable way of legally gaining income easily with no stress, I would have concluded Real estates but we all know how expensive real estate investing could be and it can't be easy earning from the real estate
I'm a public health nurse and I love picking stocks I picked all the tech companies back in 2018. It paid off big I wish I learned more about finance growing up
People claim Technical analysis is bogus. If this video doesn't smack Fundamentalists over the head and make them realize that Technical analysis (Science) Trumps.
@@ARS74499 no kidding. Using Oneil's Investors Business Daily and Covel's Trend Strategy along with a strict risk management system will also generate solid returns especially if you do not have access to computer algorithms and mathematicians.
think most people who trade are aware of Renaissance. the min i started seeing quant finance master degrees and now the book i wounder if its over. or i should say now you are stepping into a crowed market. Any thoughts!
Has anyone found any clues online how Jim Simons trades? I’ve had back to back 70% return years but not any where near the number of years he’s done it
The book specifically states when they created medallion fund and started making those returns - 1988. Initially they’ve put a lot of effort into selecting and switching between brokers and clearing houses to make sure no one can fully track their trades. But the book does provide specific clue: it states they make 300,000 trades per day, with each one having some chance of winning better than a casino. They have a team of mathematicians and scientists responsible for various strategies/formulas/indicators, so each trade is made using one of thousands of strategies, while their supercomputer also discovers some and optimizes them, so even Jim Simons couldn’t always get answers on how each strategy works - they simply mine the data and the computer finds repeatable patterns. Looking at all their trades would give you absolutely nothing. This is similar to how AI or machine learning like @deus_trader on Twitter trades. Good luck hiring 3000 scientists to figure this out.
