The Secret Fund Making 39% Yearly ๐Ÿ•ต

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The Secret Fund Making 39% Yearly

Jim Simons is a mathematics professor who, two decades ago, begun work on a โ€œrefined model of the financial markets.โ€ He had no time to buy and hold. His ambition was to develop a warp speed โ€˜black-boxโ€™ trading algorithm that would automatically scoop up eye-popping returns. Get in, get rich, get out. And wouldnโ€™t you know it? He did exactly that!

Today, over 300 scientists, statisticians, and mathematicians (a third of whom have PhDs) toil away at Renaissance Technologies (street name: โ€˜Rentecโ€™) on trading models. The Medallion Fund has carried Simons to 21st on the Forbes list, helping him and his friends compound gains of 66% before fees (39% after) each year irrespective of booms and busts. Thatโ€™s insanity. For context, investing GOAT Warren Buffett mustered 50% gains in his heyday!

Many investors claim “you canโ€™t automate alpha,โ€ but they have no answer to what Jim Simons is doing right now (even in retirement). The manโ€™s livinโ€™ it up, constantly smoking even in enclosed conference rooms and draping himself in affluent cabana wear. His words of wisdom for the rest of us mere mortals; โ€œnever override the model.โ€

Unfortunately, this article isnโ€™t about to launch into a step-by-step tutorial in joining the fund or recreating its success. Medallion is insider-only or by family invitation, and the quant trading models that it uses are kept more secret than Coca-Colaโ€™s soda recipe, the contents of Area 51, and the Krabby Patty Formula combined. All this either makes Rentec 100 times cooler, or 100 times fishier!

Itโ€™s not fraud to keep the source of your billion-dollar market edge under wraps, and it can’t be a Ponzi scheme if the fund is invitation only. The worst that can be levied against Rentec is spoiling the fun for the rest of us! All credit to โ€œthe best math and stats department in the world,” but many still see Simons profiting from a loophole that needs plugging. Warren Buffett remains the peopleโ€™s Champion!

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