4 ms·

Ok, new Medallion-like fund accepts lower returns, meaning its partners get better deals then under Medallion. Why wouldn't they leave Medallion? This is since

• papln 7y ago
  Medallion is for employees of Renaissance. It doesn't have customers/partners. If you accept that Renaissance is good at what it does, it's simple to posit that Renaiisance reserves its most profitable activities for its own employees as preferred customers/partners, as a compensation vehicle and a PR/recruiting tactic to make Renaissance look more impressive. Medallion is like Google's "X", in that sense. This explanation shows why Medallion's high returns are possible, and also why Medallion not actually better than Renaissance's overall average performance (that is, could not be replicated as an indepdent spin of without the rest of Renaissance to extract value from), beyond an acconting illusion to make ordinary wages look like investing. It's not at all surprising that this could be how Medallian works, since that's just an application hedging, which is Renaissance's core business.
  • jkaptur 7y ago
    I think that the "partners" in that comment refer to trading counterparties.
  • onetimemanytime 7y ago
    as @jkaptur said, with "partners" I meant their trading partners, clients, service providers. The OP suggested that maybe Medallion has an advantage and kept it. I suggested that a new hedge fund would pay the Medallion partners more and accept less in profit than Medallion.
• peteradio 7y ago
  Because they would be litigated to hell. It might not even be that employees are key to this hypothetical incumbency.