Hedge Fund Returns for 2010

You need to educate yourself. RenTech is a legend, the hedge fund every quant-oriented fund prays they could come close to matching. Medallion has $10b aum, and haven't had a losing quarter in more than a decade. Only the ignorant or insane would preach to that outfit.


http://online.wsj.com/article/SB10001424052748703494404575082000779302566.html

Quote from RSQ:

1. 80% return on millions

or

2. 15% on billions?

or

2. 300%+ on thousands-few millions (HFT)


Everything is relative.

If Medallion have significant AUM, at that rate it will be eating the entire other side of the trade. It would end up trading itself.

A. take a fund with 5 billion AUM. Take a small prop book with 50mil AUM. The book internally front-runs the Mother-fund. returns are 50-200% above the board.
 
Quote from poyayan:

You assume they take too much risk, but you don't know. The collective IQ in this fund is so high that I wouldn't assume anything.

Well I do know one thing and that is that risk and reward are related. Therefore knowing that, I would. You wouldn't. The bread and butter of these hedge funds are those who don't understand he relationship between risk and reward. They walk with your money no matter what.
 
Quote from piezoe:

Well I do know one thing and that is that risk and reward are related.
Only if you assume there's beta, no alpha. Most funds, that's probably the case. Medallion... Not even.
 
Quote from piezoe:

Well I do know one thing and that is that risk and reward are related. Therefore knowing that, I would. You wouldn't. The bread and butter of these hedge funds are those who don't understand he relationship between risk and reward. They walk with your money no matter what.

Medallion is in its own universe and you probably shouldn't try to fit it into what you normally think about hedge funds.
 
Quote from piezoe:

Well I do know one thing and that is that risk and reward are related. Therefore knowing that, I would. You wouldn't. The bread and butter of these hedge funds are those who don't understand he relationship between risk and reward. They walk with your money no matter what.

If you have enough capital to get into most of these hedge funds, you probably understand a thing or two about risk/reward.
 
It is startling to see how low all these returns are compared to the market, you would have thought a few of these guys would have knocked it out of the park on such a strong year.
 
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