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> one or more large, long-lived quant firms tending to expand its portfolio early in the day (when its trading moves prices more) and contract its portfolio lat
by Victerius 5y ago
> one or more large, long-lived quant firms tending to expand its portfolio early in the day (when its trading moves prices more) and contract its portfolio later in the day (when its trading moves prices less), losing money on its daily round-trip trades to create mark-to-market gains on its large existing book.
Renaissance Technologies' Medallion Fund?
Simons is a genius.
- paulpauper 5y agoI am surprised that by now, decades later, no one has the goods on Renaissance . What is to stop someone who works there or former employee from uploading to the dark web the "Renaissance strategy", for a price tag of $10-100 million btc, monero or something. Who would know. Although no one would beleive him.
- posnet 5y agoWell one of the big factors was tax avoidance. Basically mislabel your long term strategy as short term for a lower tax bill. Then just wait, and know that the final penalty fine (while still large) will still be less than the total you made over time by not paying the tax. https://www.reuters.com/business/finance/renaissance-executives-pay-about-7-bln-settle-tax-probe-wsj-2021-09-02/ https://www.reuters.com/business/finance/renaissance-executi...
- paulpauper 5y agoYou don't geta 60% cagr with tax loopholes. all hedge funds try to minimize their taxes by whatever means possible.
- vineyardmike 5y agoOne good reason is that the employee retirement fund is the Medallion fund, so employees profit from the firms continued success.