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Counterpoint: Jim Simons
by jb1991 2y ago
Counterpoint: Jim Simons
- rahimnathwani 2y agoHFT isn't primarily about fundamental valuation.
- doctorpangloss 2y agoI'm not sure why anyone would invoke Renaissance as an example of anything, giving how little people know about what they concretely do. Seems ironically unscientific of people who admire Jim Simons.
- czbond 2y agoNeither is an equity's price much of the calendar year.
- avarun 2y ago…yes. Which is why OP made the argument that this tool, which helps with fundamental performance, isn’t very useful for calculating an equity’s price target.
- rahimnathwani 2y agoWe should distinguish between: - price (absolute level) - price movements (relative change) Your claim is that an equity's price isn't usually a reflection of fundamental value. On how many days this year (or this decade) was Google's market cap lower than that of Cheesecake Factory? Why?
- czbond 2y agoI was referring to an equities price generally being in a wide band channel of price over a year. I was not suggesting an equity goes wildly below it's intrinsic value often (although it is not uncommon still)
- smabie 2y agoRentec also doesn't do HFT
- rahimnathwani 2y agoYou're right. AIUI Rentec holds positions for minutes or days (or maybe even weeks?), not seconds or less. My general point still stands.
- neeeeees 2y agoQuite the opposite actually. Simons and similar practitioners eschewed fundamental valuation techniques. Buffett is possibly a better example.