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I listen to Acquired religiously, but felt this particular episode was pretty weak. They went through Zuckerman's The Man Who Solved the Market [0] chapter by c
by bcherny 2y ago
I listen to Acquired religiously, but felt this particular episode was pretty weak. They went through Zuckerman's The Man Who Solved the Market [0] chapter by chapter, butchering a few parts because the hosts don't know quant finance well (though they seem to know VC and product very well).
I'd recommend just reading the book instead. I'd also recommend Derman's My Life as a Quant [1] for a broader take at other firms around the same time that Renaissance was taking off.
[0] https://a.co/d/6x7ALkr https://a.co/d/6x7ALkr
[1] https://a.co/d/5vWBOce https://a.co/d/5vWBOce
- mgfist 2y agoIt's tough because of how little material is out there. I will say, I thought their hypothesis on why the fees are so high was very astute. Can't know if it's true or not, but it feels very compelling.
- bcherny 2y agoThe wealth transfer hypothesis I didn’t really get, but their other hypothesis that it’s a way to nudge non-employees out of the fund is probably right.
- mgfist 2y agoI think "wealth transfer" is a poor description. Really it's just a way to ensure they have enough money to compensate (very highly) less tenured employees, and to align incentives better (i.e. not just being paid because you're already rich and tenured).
- bcherny 2y agoYes, I agree. That's a less loaded way of explaining it.