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Point is, could you have identified Renaissance Technologies in 1994 as one of the few companies to beat the market? If not, then your odds are better going wit
by n72 10y ago
Point is, could you have identified Renaissance Technologies in 1994 as one of the few companies to beat the market? If not, then your odds are better going with an index fund.
At this point, because of Renaissance Technologies' success, their fees will likely offset the gains they'll net you.
- ves 10y agoThey still make you tons of money net of fees. However, because of their success, they very quickly attracted all the money they thought they could handle and closed the fund to new investors. I think recently their performance slipped a bit and they started taking money again, but the above point was true for a long time.
- auntienomen 10y agoThere's a subtlety here: Renaissance is a company which manages hedge funds. They're famous because their main fund, Medallion, has done exceptionally well. The only investors in Medallion are Renaissance employees; it's capacity is limited, so that even employees can't generally invest as much as they'd like. Renaissance also manages several other hedge funds, which have much higher capacity, and have both employee and outside investors.