Jim Simons has even steadier profits than Madoff, another Ponzi?

[crgarcia]

Quote from mokwit:

I have always suspected that there was something of a bait and switch going on. He is a legenary investor in unaudited funds but that same magic seems not to really translate to OPM.

Very possible.

 

[Renegen]

There's no reason why all of these PhDs aren't at least trying to make some money for the fund. I don't see them quitting their high profile jobs and possibility of research for some kind of dirty money making scheme.

 

[Corelio]

Quote from makloda:

An interesting train of thoughts would be

1. Artificially "prop" up Medaillon's results. Make sure no outside money is invested so if somebody cracks down on the beautified returns then you argue the limited partners in the fund - which are Simons himself and his employees - won't press charges.
2. Use Medaillon's returns (which are unavailable to outside investors) as a marketing tool to lure investors into the billion dollar RIFF (managed futures) and REIF (alternative beta equity) funds which are losing money, both down (not devastatingly though) in 2008. Simons and his employees collect fixed fees - which I read they're now paying back, probably due to pissed off investors.

Probably far from reality, but some investors in RIFF and REIF must feel a little bit like "let outside, standing in the rain" as they bought into Simons' genius over Medaillon.

I'm sure that these ideas already crossed the minds of a lot of investors.