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Medallion distributes their earnings and stays a fixed size rather than compounding, so it's a category error to compare their returns to most hedge funds. (At
by evanpw 5y ago
Medallion distributes their earnings and stays a fixed size rather than compounding, so it's a category error to compare their returns to most hedge funds. (At 66% return for 30 years, they'd own everything in the world otherwise). They're more like an internal prop-trading firm, which makes their returns good but not insane.
- carnitine 5y agoI’m well aware it’s not compounded, it’s still a worthwhile comparison. We’re comparing ability to capture alpha, they’re clearly among the best in the world at that. 66% is insane for 30 years as a prop desk even with a fixed capacity, what makes you say it’s just good? Who is doing better?