50 Global Top Hedge Funds (3)
9) Renaissance Technologies LLC Renaissance Technologies
Renaissance Technologies was founded in 1982 and manages over $65 billion.
When it comes to this company, you have to talk about its founder, the famous James Simmons. Before making a name for himself on Wall Street, Simmons was recognized worldwide as a mathematician in another capacity long before he made his name. He received his Ph.D. in mathematics from the University of California, Berkeley at the age of 23, became a lecturer in mathematics at Harvard a year later, and then went on to He was only 30 years old when he became chair of the mathematics department at Stony Brook University in New York State. Simmons spent eight years at Stony Brook doing research in pure mathematics, during which time he co-founded, with renowned Chinese mathematician Shiing-Shen Chen, a research project on mathematics and Physics influenced the far-reaching Chern-Simons theory.In 1976, Simons took the mathematical crown - the His career in mathematics culminated in the Veblen Award.
In finance, he invented the unique "Gecko method" of investing by making short term directional predictions while trading a lot of money. The variety, relying on a large number of transactions completed in a short period of time to make a profit. In the words of Simmons, trading "to be like a gecko, usually lying on the wall, not moving, mosquitoes appear to eat it quickly. Then calm returns and we wait for the next opportunity." Whether it was the Russian bond crisis of 1998 or the dot-com bubble of the early 2000s, Simmons has managed the Grand Prize Medallion Fund through the Several financial crises, always standing, so that the effective market hypothesis are eclipsed. The industry generally believes that the myth of Simmons' invincibility is mainly due to its "Gecko-style investment method". Turned to the investment community, "the second battlefield" twenty years later, Simmons with a series of data to prove their success: 1989 to the During 2009, the average annual return of the Grand Prize Medallion Fund was 35%, which was higher than the average annual return of the S&P 500 during the same period. More than 20 percentage points, more than 10 percentage points higher than the "financial predator" Soros and "stock god" Buffett's trading performance. Even in 2007, when the subprime mortgage crisis broke out, the fund's return was still as high as 85%.
The mathematical talent of the founders naturally influenced the culture and atmosphere of the entire company. Renaissance Technologies can be considered a pioneer in quantitative trading. Researchers use decades of data in a database to analyze and predict the price movements of statistically significant securities. Big data is so hot these days, yet Renaissance Technologies has been using the concept of big data to trade for more than 20 years. Many of the experts that have been employed by the company have virtually no background in finance, including mathematicians, physicists, statisticians, etc. More than a third of the company's more than 300 employees have doctorates in these basic sciences. As a result, the company has been called "the best physics and mathematics department in the world.
The company now runs a fund called Renaissance Institutional Capital, Renaissance Capital. Institutional Equities Fund (RIEF). This fund is not as old as the company's famous Medallion Fund, which accepts money from company insiders only. The RIEF only accepts money from the company's own staff to invest.
10)Two Sigma
It is not an investment firm in the typical sense. It follows the principles of technology and innovation, and makes decisions led by machine learning and distributed computing.Founded in 2001, it has always been Developing the latest technology outside of investing to make better decisions.
The founders, David and John, are both leaders in technology investing, with expertise in the development of computer-driven, model-based trading systems. Over 40 years of experience. The company has more than 22,000,000 GB of data and can perform 14 calculations of 10 per second. More than two-thirds of the company, more than 60 percent of its employees have no financial background, and it manages $35 billion.
The company combines massive amounts of data, world class computer systems and financial experts to produce high-end trading models, as well as a technological vision to Optimizing investments and managing risk. As mentioned earlier, the company uses machine learning, distributed computing, and other cutting-edge methods of technology, but also uses fresh ideas and economic assumptions as starting points , combined with scientific means to test and expand it.
Such a company is undoubtedly an example of a trendsetter. The legends of those who lead the way in technology will continue to be written.
