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How scalable is RenTec? Can they go up to 100B in AUM? 200B?
by IBM 9y ago
How scalable is RenTec? Can they go up to 100B in AUM? 200B?
- ycombobreaker 9y agoWhy would they need to?
- MagnumOpus 9y agoNo they can't. I think they have order of magnitude of 10bn of their own money in their good strategies (Medallion et al), and another 10bn-ish of external money in their bad/stale strategies (which are still among the better hedge funds and can charge 1%+10). But reputedly they neither allow external money into Medallion nor do they let employees compound their existing stake in the fund but pay out ginormous 20%-40% annual dividends exactly because the strategy is not scalable.