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Renaissance Technologies is a hedge fund management company. Renaissance was started by James Simons in 1982. At March 31, 2007, it held some $27 billion in public equity positions. Its $6 billion Medallion Fund has averaged 35% annual returns, after fees, since 1989, and is considered in the industry to be the most consistently successful hedge fund, yielding returns ten percentage points higher than legendary investors Bruce Kovner, George Soros, or Paul Tudor Jones. [1] Because it is so successful, it charges a 5% management fee and a 44% incentive fee. A measurement of the risk (like beta, volatility, or leverage figures) which accompanied its high annual returns is apparently not publicly available. Extremely secretive (though unlike certain other investment management companies, not as secretive as to not have a public website), the company operates in East Setauket, Long Island, New York, near Stony Brook University. Administrative functions are handled out of offices in Manhattan. Image File history File links No higher resolution available. ...
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Year 1982 (MCMLXXXII) was a common year starting on Friday (link displays the 1982 Gregorian calendar). ...
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Setauket-East Setauket is a census-designated place located in Suffolk County, New York. ...
James H. Simons. ...
Investment management is the professional management of various securities (shares, bonds etc) assets (e. ...
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ISO 4217 Code USD User(s) the United States, the British Indian Ocean Territory,[1] the British Virgin Islands, East Timor, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, Panama, Turks and Caicos Islands, and the insular areas of the United States Inflation 2. ...
Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...
Net income is equal to the income that a firm has after subtracting costs and expenses from the total revenue. ...
ISO 4217 Code USD User(s) the United States, the British Indian Ocean Territory,[1] the British Virgin Islands, East Timor, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, Panama, Turks and Caicos Islands, and the insular areas of the United States Inflation 2. ...
Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...
For the album by the Kaiser Chiefs see Employment (album) Employment is a contract between two parties, one being the employer and the other being the employee. ...
Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...
A website (alternatively, Web site or web site) is a collection of Web pages, images, videos and other digital assets that is hosted on one or several Web server(s), usually accessible via the Internet, cell phone or a LAN. A Web page is a document, typically written in HTML...
A hedge fund is a private investment fund charging a performance fee and typically open to only a limited range of qualified investors. ...
James H. Simons. ...
Bruce Stanley Kovner (born 1945 in Brooklyn, New York) is an American businessman. ...
George Soros (pronounced ) [Shorosh] (born August 12, 1930, in Budapest, Hungary, as György Schwartz) is an American financial speculator, stock investor, philanthropist, and political activist. ...
Paul Tudor Jones Paul Tudor Jones is one of the most famous and accomplished commodity traders in the 21st Century. ...
The Beta coefficient, in terms of finance and investing, is a measure of a stock (or portfolio)’s volatility in relation to the rest of the market. ...
Volatility most frequently refers to the standard deviation of the change in value of a financial instrument with a specific time horizon. ...
In finance, leverage (or gearing) is using given resources in such a way that the potential positive or negative outcome is magnified. ...
Setauket-East Setauket is a census-designated place located in Suffolk County, New York on the North Shore of Long Island. ...
This article is about Long Island in New York State. ...
The State University of New York at Stony Brook (SUNYSB), also known as Stony Brook University (SBU) is a public research university located in Stony Brook, New York (on the north side of Long Island, about 55 miles east of Manhattan, New York). ...
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Scientifically based investment strategy
For over two decades, Renaissance has been at the forefront of research in mathematics and economic analysis. Renaissance employs more than 70 scientific specialists, including mathematicians, physicists, astrophysicists and statisticians, who review market data to find statistical relationships that predict the price movements of commodities, currencies and stocks. These employees come from countries as diverse as Japan and Cuba [2]. Euclid, Greek mathematician, 3rd century BC, as imagined by by Raphael in this detail from The School of Athens. ...
Leonhard Euler, considered one of the greatest mathematicians of all time A mathematician is a person whose primary area of study and research is the field of mathematics. ...
Not to be confused with physician, a person who practices medicine. ...
An astrophysicist is a person whose profession is astrophysics. ...
Statisticians are mathematicians who work with theoretical and applied statistics in the both the private and public sectors. ...
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This article does not cite any references or sources. ...
Renaissance uses computer-based models to predict price changes in easily-traded financial instruments. These models are based on analyzing as much data as can be gathered, then looking for non-random movements to make predictions. Renaissance represents a validation of the quantitative trading model and trades with such high frequency that it (the Nova fund, specifically) accounts for over 10% of all the trades occurring on NASDAQ some days. This article is about the machine. ...
A quantitative analyst is a person who works in the financial markets developing mathematical models to assist the activities of traders and risk managers within banks and other large corporate institutions. ...
It is worth noting that Nova trades execute purely electronically on direction from a computer model. Medallion fund trades are (in large part) executed through a trading desk, whose goal is to increase the value of the positions the model directs the desk to take by timing market trends and executing in novel fashions (including intra-desk trading).
Renaissance trades at margin levels uncharacteristically low among hedge funds. This allows them to significantly reduce exposure risk, while the efficiency of their computational model allows for consistently high returns.
Like many other quantitative funds, their RIE Fund had difficulty with the higher volatility environment that persisted throughout the end of summer 2007. According to an August 10th article in Bloomberg by Katherine Burton, "James Simons's $29 billion Renaissance Institutional Equities Fund has fallen 8.7 percent so far in August when his computer models used to buy and sell stocks were overwhelmed by securities' price swings. The two-year-old quantitative, or 'quant,' hedge fund now has declined 7.4 percent for the year. Simons said other hedge funds have been forced to sell positions, short-circuiting statistical models based on the relationships among securities."
Noted instruments The Medallion Fund historically has traded non-stock instruments and is international in scope. American-traded instruments include commodities futures (energies, corn, wheat, soybeans, etc.) and US Treasury bonds. Foreign-traded instruments include currency swaps, commodities futures, and foreign bonds. The Medallion Fund has its own internal trading desk, staffed by approximately 20 traders, and trades from Monday opening bell in Australia through Friday closing bell in the US. Its origins date to the late 1980s, and it is believed to have essentially subsumed the trading positions of Berkeley, CA-based Axcom Trading Advisors after that company's dissolution in 1992. A currency swap is a foreign exchange agreement between two parties to exchange a given amount of one currency for another and, after a specified period of time, to give back the original amounts swapped. ...
In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price. ...
For alternative meanings, see bond (a disambiguation page). ...
Axcom Trading Advisors was an early alternative investment management company founded by Elwyn Berlekamp and based in Berkeley, CA. It was acquired by Renaissance Technologies Corp in 1992, and it is believed that its investment instruments were either subsumed into (or essentially renamed as) Renaissances flagship Medallion Fund. ...
The Nova Fund historically has traded NASDAQ stocks only, executing purely electronically, with a desk staffed by 1-2 traders overseeing operations. In the mid-1990s, Nova was one of Instinet's largest volume customers. On one day in 1997 Nova executions accounted for 14% of the share volume of the NASDAQ. NASDAQ in Times Square, New York City. ...
The Renaissance Institutional Equities Fund, started in mid-2005 is being offered as a "mega-fund" for institutional investors; reportedly it has a capacity of up to $100bn.
Renaissance runs a number of other funds in various markets, including mortgage-backed securities and funds of external managed funds.
Key Personnel - Jim Simons, Founder, Director, President & CEO
- Paul Broder, Manager, Medallion Fund Trading Desk
- Gudjon Hermansson, Production Manager, Medallion Fund. Stony Brook University, PhD, Computer Science, 1993
- Henry Laufer, Vice President of Research
- Robert Lourie, Head, Futures Research
- David Magerman, Production Manager, Lead Technical Architect, Nova Fund
- Nathaniel Simons, Principal
James H. Simons. ...
Renaissance Alumni - Alexander Astashkevich - Research, Medallion Fund, committed suicide in February, 2006
- Elwyn Berlekamp - president of Axcom Trading Advisors, predecessor to the Medallion Fund
- Robert J. Frey, 1992-2004 - Managing Director Emeritus
- Nick Patterson, Research, Medallion Fund; noted chess player, formerly with the UK's GCHQ; now at MIT's Broad Institute
- Kresimir Penavic, Research, Medallion Fund (retired)
- Alkes Price, Research, Medallion Fund; now at Harvard
- Peter J. Weinberger (the "w" in AWK), Medallion Fund, left Renaissance for Google in 2003
Elwyn Ralph Berlekamp (born September 6, 1940 in Dover, Ohio, United States of America) is a professor of mathematics at the University of California, Berkeley. ...
Axcom Trading Advisors was an early alternative investment management company founded by Elwyn Berlekamp and based in Berkeley, CA. It was acquired by Renaissance Technologies Corp in 1992, and it is believed that its investment instruments were either subsumed into (or essentially renamed as) Renaissances flagship Medallion Fund. ...
The Medallion Fund is one of the most noted investment instruments associated with East Sautuket, NY-based Renaissance Technologies Corp, along with its (decommissioned) Nova Fund and the Renaissance Institutional Equities Fund, started in mid-2005. ...
The Government Communications Headquarters (GCHQ) is a British intelligence agency responsible for providing signals intelligence (SIGINT) and information assurance. ...
The Broad Institute of MIT and Harvard, formerly the Whitehead Institute/MIT Center for Genome Research (WICGR), is a multidisciplinary institution dedicated to fulfilling the potential of genomics for the biomedical sciences. ...
Peter J. Weinberger is a computer scientist who worked at AT&T Bell Labs and contributed to the design of the pioneering AWK programming language (he is the W in AWK). ...
AWK is a general purpose computer language that is designed for processing text-based data, either in files or data streams. ...
This article is about the corporation. ...
External links - Hoovers.com - 'Renaissance Technologies Corporation' (corporate profile)
- IHES.fr - 'Jim Simons' (profile)
- TurtleTrader.com - 'Jim Simons: Renaissance Technologies Corp.'
- Renaissance Institutional Equities Fund has established its home in Malta
- Mathematics Geneaology Project - Alkes Price
- Mathematics Geneaology Project - Henry Laufer
- Robert Frey
- computer.org From AWK to Google: Peter Weinberger Talks Search
- DBLP Bibliography for Gudjon Hermannsson
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