Renaissance Technologies’ Medallion Fund is indisputably the greatest hedge fund of all times, with annualized returns of 66% over a 30-year-period, fully earning its now-titular reputation for having solved the market. But given that Medallion—which is, of course, closed to those who don’t work for RenTech or have blood ties to Jim Simons—truly shines when everything else is going to shit (see: 2000, 2008), can the best hedge fund ever get better? Why, yes, yes it can.

Medallion, which manages nearly $10 billion, was up about 39% for the year on April 14…. In late March, Medallion’s investors were given the opportunity to put more money in the hedge fund so the firm could expand its size. That move may have been made because the computers anticipate more opportunity for profits—and more volatile and challenging markets—in the months ahead.

Of course, RenTech is staffed by mathematicians, physicists, string theorists, astronomers and other Ph.Ds to make any university on earth jealous. But these are not the kind of people who like to make things easy on themselves, and so they’ve decided not to.

The $75bn hedge fund group disclosed in a regulatory filing that Medallion — a highly successful fund only open to Renaissance’s own employees — was dabbling in bitcoin, the original cryptocurrency.

Speaking of 2008, investors in Renaissance’s other, lesser funds are, as ever, doing less well.

The Renaissance Institutional Equities Fund was down 17 percent as of Friday — compared to a 24 percent drop in the Dow Jones industrial average — while the Renaissance Institutional Diversified Alpha lost 13 percent in the same period, sources said.

Renaissance’s $10 Billion Medallion Fund Gains 24% Year to Date in Tumultuous Market [WSJ]
Flagship Renaissance fund dabbles with bitcoin [FT]
Renaissance Technologies hedge fund takes 17 percent hit due to coronavirus [N.Y. Post]

Related