The man who turned $100 dollars into $400 million

Ok, the title doesn’t cover everything. By now you all might have heard or read about the legend of Jim Simmons given the recent publishing of The Man Who Solved the Market: How Jim Simmons Launched the Quant Revolution.

In case you haven’t, Jim Simmons is the founder of Renaissance Technologies, a quantitative hedge fund. What makes Ren Tech special is that medallion one of their funds has had a amazing return that defies all know logic in the markets. Since 1988, Medallion has returned 66% annualized pre-fees. And even post fees, the fund has returned 39%. Typically hedge funds charge a 2% annual fee and 20% performance fee. But Medallion was charging a crazy, astounding, mind-boggling 5 and 44%

What’s even more crazier is that the fund has never had a negative year. The fund didn’t even lose money during the dot-com crash in the 2000’s and even during the global financial crisis of 2008. That’s just so insanely crazy. And no, the fund doesn’t do HFT trading. Their average trades are couple of days and they are long and short on thousands of stocks at the same time. The fund has been closed to outside investors since 1993 and has been open only to employees.

Here’s where Jim Simmons’ Medallion ranks among the pantheon of other great investors:

But the crazy part is, no one has figured out the secret sauce. But this paper is nice start to acquaint yourself with the legend of Jim Simmons

You can also listen to these podcasts:

You can also check out thebook by Gregory Zuckerman


Thanks for posting this.

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I never actually heard of that man, but for sure have heard of Soros (mostly negative things) and Buffet for sure, probably the fact it’s doing usual thing and closed in the same time allow him to outbid Soros in that list, it’s just a great deal for sure!

nice alspt write on BNF Japanese trader

From the entire list, Warren Buffet is the only one who has been longer in the business and whose trades/investments are transparent/open and could be analysed and users could replicate from an investment point of view, not only stocks/companies in his portfolio but the ones out there he hasn’t even touched yet because of the reasons he has mentioned in his book, because they were either too small, didn’t belong to the sector he preferred, etc etc. His book was pretty good actually.

In one interview he said that he uses probability,stats, historical data to do the coding
@RahulKhanna bro cant download the paper

Works for me. Create an account on SSRN on download it.

Which book are you referring.

Buffett - The Making of an American Capitalist!

Edit : It is a good book, not completely on investing but his journey overall. His mindset, criterion for various choices or the investments he made and why he made them with genuine rationale.

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