3 ms·
Great book about his that is mentioned in the article, well worth reading. I read it and recognized a lot of interesting things in the evolution of his thinking
by lordnacho 2y ago
Great book about his that is mentioned in the article, well worth reading. I read it and recognized a lot of interesting things in the evolution of his thinking, in terms of strategies. I think most of what they do will be recognizable to someone in the business.
In the end though, it's not about the specific strategies. If I steal the recipe of a Michelin chef, I will still not be able to make a sufflé, since I don't have the prerequisite skills. I might be able to give it to someone who does, and maybe he will make something similar to the original, but even this person would not be able to follow the evolution of the original chef into making new, innovative dishes.
In the end it seems that this highly technically proficient guy actually succeeded in building something as nebulous as a winning culture.
- richrichie 2y ago> In the end though, it's not about the specific strategies. If I steal the recipe of a Michelin chef, I will still not be able to make a sufflé, since I don't have the prerequisite skills. This is a great point. But even the pre-requisite skills should not matter in this case (you could always higher 100's of math/physics phDs?). The key element of RenTec's success is execution and it was mentioned in passing in the book by the WSJ reporter. RenTec does not need a super duper algorithm that predicts with 80 or 90% accuracy. A 2% edge is sufficient, provided they can place tens thousands of bets that are less correlated, day in day out. Then they are guaranteed to make a ton of money over the year by the law of large numbers. The ability to find and execute trades in that scale is a key part of RenTec a success.
- lupire 2y agoA 0.1% edge is sufficient.
- maximinus_thrax 2y agoWhich book exactly? "The Man Who Solved The Market"?
- lordnacho 2y agoYeah