[..]Renaissance is on fire: Its Medallion Fund -- which uses
computers and trading algorithms to invest in world markets --
returned more than 50 percent in the first three quarters of
2007. It had about $6 billion in assets as of July 1.
Simons registered that performance as subprime and related
markets were collapsing, sending two mortgage-related hedge
funds run by Bear Stearns Cos. into bankruptcy. The turmoil
pummeled the Goldman Sachs Global Alpha Fund, a rival to
Renaissance's funds, which fell more than 25 percent during the
same time. Morgan Stanley's computer jockeys lost $390 million
in a single day in early August.
[...]
In August 2005, Simons started Renaissance Institutional
Equities Fund, or RIEF, which invests in U.S. stocks. Through
Sept. 30, it has returned 12.8 percent annualized. Unlike
Medallion, which turns over its holdings dozens of times each
year, RIEF keeps its positions for months or longer. Simons said
at the time of the fund's inception RIEF could theoretically
manage as much as $100 billion.
computers and trading algorithms to invest in world markets --
returned more than 50 percent in the first three quarters of
2007. It had about $6 billion in assets as of July 1.
Simons registered that performance as subprime and related
markets were collapsing, sending two mortgage-related hedge
funds run by Bear Stearns Cos. into bankruptcy. The turmoil
pummeled the Goldman Sachs Global Alpha Fund, a rival to
Renaissance's funds, which fell more than 25 percent during the
same time. Morgan Stanley's computer jockeys lost $390 million
in a single day in early August.
[...]
In August 2005, Simons started Renaissance Institutional
Equities Fund, or RIEF, which invests in U.S. stocks. Through
Sept. 30, it has returned 12.8 percent annualized. Unlike
Medallion, which turns over its holdings dozens of times each
year, RIEF keeps its positions for months or longer. Simons said
at the time of the fund's inception RIEF could theoretically
manage as much as $100 billion.
