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No I think you got it wrong. They're using a lot of algorithms to filter out the noise in the market and make speculative moves (bets, gambles) with a certain a
by keyle 10y ago
No I think you got it wrong. They're using a lot of algorithms to filter out the noise in the market and make speculative moves (bets, gambles) with a certain amount of certitude (weight, size) with the goal of making money.
I believe they keep that fund private because the risk factors must be through the roof. And frankly, they don't need that external money to make a ton of more money.
Do they have low latency, very fast computers, yes. Is it what's making the difference, no, I don't think so. It's the models they use to assess and predict - current and future moves - that makes the real difference.
- mistermann 10y agoAnd yet, despite the risk factors for the private funds being through the roof, they never lose money, and as another commenter pointed out, the public funds are losing money. I'm sure it's all on the up and up. ;)
- oh_sigh 10y agoRight...why wouldn't they open that fund to others and rake in more in fees than they could ever make growing their own money? Seems fishy
- tedunangst 10y agoMaybe they're content with the few billions they're making and like the autonomy?
- freyr 10y agoOnce a fund grows beyond a certain size, its trades can have significant influence on the market. This, in turn, disrupts the models that led to its success.
- PeterisP 10y agoOn that scale, for any trades/substrategies you can easily reach a cap where extra capital is not useful. If you can already run/extract all the deals that you want with your current capital, then taking in more money just distributes the same pie into smaller pieces.
- MaysonL 10y agoI would think they keep the fund private, and return profits annually, to keep the size of the fund limited. The strategies they employ probably cannot work as well at larger scale. Here's a rare interview with Jim Simons: http://ritholtz.com/2016/07/jim-simons-mathematician-cracked-wall-street-2/ http://ritholtz.com/2016/07/jim-simons-mathematician-cracked...
- keyle 10y agoThat was a great watch, recommended.
- vostok 10y ago> I believe they keep that fund private because the risk factors must be through the roof. And frankly, they don't need that external money to make a ton of more money. I think the real reason is that the main fund can't manage more money.