4 ms·
This complements another wild theory I've heard, which is that the Medallion Fund exists to launder money from corrupt states. Say you have a $200B state pensi
by bitcurious 7y ago
This complements another wild theory I've heard, which is that the Medallion Fund exists to launder money from corrupt states.
Say you have a $200B state pension fund - you invest a portion in the loser fund, earn a portion back as personal wealth on the winner side.
- dankohn1 7y agoThis is deeply insightful.
- james-imitative 7y agoYes. I would endorse this comment.
- dereg 7y agoYour theory is interesting but it's just speculative fodder. Getting capacity in something like Medallion is pretty much impossible. The lowly head of a state pension fund would never have access to such capacity. Doing this sort of thing destroys the reputation of hedge funds and is not a long-term positive expected value decision. (See Bluecrest: https://dealbook.nytimes.com/2014/05/29/fund-within-a-fund-creates-a-conflict/ https://dealbook.nytimes.com/2014/05/29/fund-within-a-fund-c...) While skepticism of Medallion is warranted, we're not doing ourselves favors by explaining away its success with activity that would have much more likely killed the firm vs sustained it.