Bob Mercer Would Even Take A Loan From Jim Simons' Son To Get More Of That Sweet, Sweet Medallion Action

Nothing is out-of-bounds when it comes to investing in RenTech's super-secret internal hedge fund.

Sometime in the late 1980s, Jim Simons went down to the crossroads. There he met someone – some say the devil, others have more outlandish theories – who made him a offer too good to refuse. No one outside of Renaissance Technologies knows what the tradeoff was, only that Simons took it. Since then, in RenTech's clandestine, pulsing center, Simons has run what is essentially a printing press, a fund whose fruits are too sacred to be shared with anyone outside of the company. It's called Medallion. It has minted $55 billion in the past three decades.


It's no wonder, then, that in those brief snatches of time when Simons decides to lift the window at Medallion and accept additional internal investments, employees move heaven and earth to get more cash in. So when an opportunity to add cash to Medallion opened up for a few weeks in December, even senior executives like our friend Robert Mercer made some, uh, extraordinary moves to capitalize on it:

Mercer’s allocation would have increased by at least $100 million, the person familiar with the situation said. He entered into a financing agreement with Meritage Group, a San Francisco-based asset manager overseen by Nathaniel Simons, the son of Renaissance’s founder, according to documents filed on Dec. 28 with the New York Department of State. Mercer and a trust in his name each pledged their entire Medallion Fund LP stakes as collateral, according to the filings, which don’t specify the amount of the loan.

Mercer, of course, is a rich man. He's probably not strapped for cash in the broader sense. But it's understandable that he may be hard up for liquidity, given all of his extracurricular pursuits in the last year. Getting a guy into the Oval Office doesn't come cheap.

But Mercer isn't the only one who took a trip to the bank to get more cash into the glowing money orb:

At least four other Renaissance executives got new credit lines from JPMorgan Chase & Co. around the same time, regulatory filings show, while a fifth added collateral to an existing financing arrangement with the bank.

At least they didn't have to borrow from their boss's son t0 pile in.

Renaissance’s Medallion Made a Stunning Shift After Trump’s Election [Bloomberg]


This Is A Story About A Guy Telling A Random Dude On The Street "I'm actually building a hedge fund that uses quantitative strategies to pick stocks" And That Dude Actually Being Jim Simons

Something we've long-maintained around the Dealbreaker office is that hedge fund manager Jim Simons would make a great fairy godmother, what with his soothing voice, white beard, and the fact that he's really just a lovable math teacher who happened to make a zillion dollars by tinkering away the computers in his garage and would be happy to lend the powers of his magic cigarette wand to those in need.  So we were extremely pleased to have our attention brought to an anecdote from Scott Patterson's Dark Pools, in which Simons seems to appear out of nowhere, just like a FGM would, sprinkles unexpected gifts on a young man and woman (of both hope* and nicotine), and then disappears as quickly as he came via golden carriage. (We also appreciate that Simons is the kind of FGM that will laugh in your face as you explain to him what a quant fund is, not realizing he's got some experience there.) One day in the summer of 2006, Fleiss was having lunch outdoors with his girlfriend at a restaurant on the Upper East Side. As they chatted in the sun after their meal, an elderly man dressed in a modest suit walked out of the restaurant and lit up a cigarette. Fleiss's girlfriend bummed a smoke off him, and they began to chat. "So what do you do?" he asked Fleiss. "I'm actually building a hedge fund that uses quantitative strategies to pick stocks," he said. "Oh really?" The man laughed. "Where did you go to school?" "Amherst." "Good school. You know, I'm also in the quant biz." Fleiss asked where he worked, but the man wouldn't answer. But Fleiss kept pushing. Finally, the man said he ran a fund called Renaissance Technologies. Fleiss nearly fell out of his chair. He wanted to talk more, but a gleaming Bentley had just pulled to the curb and Jim Simons quickly disappeared into it. Dark Pools [Scott Patterson] Related: Who Wants to Become A Rebellion Research Investor? *That some of his quant-i-ness would rub off on the guy.