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Renaissance Technologies
Renaissance Technologies
Season 14
Episode 
3
 • 
Mar 18, 2024
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Renaissance Technologies
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The Quant Hedge Fund That Beats Everyone

overview

Renaissance Technologies is the best performing investment firm of all time. And yet no one at RenTec would consider themselves an “investor”, at least in any traditional sense of the word. It’d rather be more accurate to call them scientists — scientists who’ve discovered a system of math, computers and artificial intelligence that has evolved into the greatest money making machine the world has ever seen. And boy does it work: RenTec’s alchemic colossus has posted annual returns in the firm’s flagship Medallion Fund of 68% gross and 40% net over the past 34 years, while never once losing money. (For those keeping track at home, $1,000 invested in Medallion in 1988 would have compounded to $46.5B today… if you’d been allowed to keep it in.) Tune in for an incredible story of the small group of rebel mathematicians who didn’t just beat the market, but in the words of author Greg Zuckerman “solved it.”

Many thanks to our season partners
Many thanks to our fantastic sponsors

corrections

  • Sandor Straus (who at the time owned 25% of RenTec) never returned to Stony Brook after moving to California in 1985. He instead ran the office in Northern California.
  • The Medallion Fund originally had 20% carried interest (and the famous 5% fees). The 5% fees was indeed set by the original budget necessary to run the computer system — $800k budget for a $16m fund.
  • While technically Medallion does use “one model”, there are many instances of special-case code for different trading markets.
Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.
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Renaissance Technologies
Renaissance Technologies
S14
 • 
Mar 18, 2024
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