“Today, Mr. Simons is considered the most successful money maker in the history of modern finance. Since 1988, his flagship Medallion fund has generated average annual returns of 66% before charging hefty investor fees—39% after fees—racking up trading gains of more than $100 billion. No one in the investment world comes close. Warren Buffett, George Soros, Peter Lynch, Steve Cohen, and Ray Dalio all fall short.”
Five and Thirty
5% management fee and 30% performance fee, that’s the fee structure of the Medallion fund. Is that the world’s most expensive hedge fund? Relatively speaking, the standard fee structure is two and twenty and there’s a war on driving those fees down. We can safely say that Renaissance has earned their fees.
Of course the book doesn’t reveal the secret sauce. However we know that Renaissance is using very complex algorithms, fancy computers and a lot of leverage.
And no you can’t invest with Renaissance.