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Someone's going to say this eventually, so it may as well be me. Rentech is not the only hyper successful fund. There are others, like TGS management (https://
by deepnotderp 7y ago
Someone's going to say this eventually, so it may as well be me.
Rentech is not the only hyper successful fund. There are others, like TGS management (https://www.google.com/amp/s/www.cnbc.com/amp/2014/05/09/mystery-13-billion-philanthropists-revealed.html https://www.google.com/amp/s/www.cnbc.com/amp/2014/05/09/mys...) that are just as successful and who you've never heard of.
What rentech has done is to have built an excellent data processing engine that automatically extracts signal from noise. Other, much more secretive, funds have done this too.
- throw_this_one 7y agoVery cool. Do you have any info/resources on how the signal extraction works?
- deepnotderp 7y agoSignal processing, information geometry and information theory mostly. You can read the papers rentech authors publish before they leave
- objektif 7y agoDo you have any examples?
- nikofeyn 7y agowhenever i heard of stuff like this, i think of ligo, the gravitational wave detectors. from what i understand, their signals are just huge amounts of noise, other signals, and then finally the actual signals (gravitational waves) that thy are looking for. but it so happens the gravitational waves is a miniscule amplitude compared to the other signals and noise. so what they do is model all the possible types of noise that is happening in the world, and then they have many models of the type of physical situations that can generate gravitational waves (like a black hole - black hole collision). so they do fancy dsp and filtering and do matches against expected events. my naive assumption and pure guess would be that a lot of trading schemes looking for patterns do this thing to. they model what shows up as noise and other signals and also model what determines value, and then look for the signals that point to or away from value. https://www.gw-openscience.org/GW150914data/LOSC_Event_tutorial_GW150914.html https://www.gw-openscience.org/GW150914data/LOSC_Event_tutor...
- deepnotderp 7y agoYes, you're 100% correct. In fact, if I remember correctly that David Donaho was a co author on many of the papers for the LIGO detection technique
- hatred 7y agoThink there are many others (you mentioned one of them e.g., TGS) but they are not in the same league as RenTec's medallion fund.
- throwawaymath 7y agoTGS is comparable to Medallion. The two have competed for talent in the past, and TGS actually spreads higher AUM over fewer people. TGS just doesn't have satellite funds, so they're quieter.
- hatred 7y agohmm, I did not know that. Do you have some external links or returns to back this claim?
- auntienomen 7y agoTGS is famously secretive. They went prop in the early 90s; no external investors. You won't find their returns anywhere. The only public data available (that I know of) is related to their charitable giving. https://www.bloomberg.com/news/articles/2014-05-08/three-mysterious-philanthropists-fund-fourth-largest-u-dot-s-dot-charity https://www.bloomberg.com/news/articles/2014-05-08/three-mys...
- ironyman 7y agoNo public data in recent years but if you dig a little deeper you can find bits and pieces here and there about their past. Not sure what name they trade under these days because I can't even find a 13-F.
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