The non-compounding aspect is critical: you can think of the Medallion fund as a business that, with a capital base of (say) 5 billion dollars, produces an annu

The non-compounding aspect is critical: you can think of the Medallion fund as a business that, with a capital base of (say) 5 billion dollars, produces an annual profit of 2 billion dollars ... but cannot grow, and so distributes all of that profit every year. Kind of like a very profitable but geographically-isolated monopoly, telco, etc.