Thursday, September 22, 2016

Strategy of Renaissance Technologies Medallion fund: Holy Grail or next Madoff?


Renaissance Technologies Medallion fund is one of the most successful hedge funds - ever! Yet it is very secretive.


Do you have information on the strategy used that is not yet mentioned in the Wikipedia article above?


Is there really something fundamental going on (the Holy Grail of investing) - or will this be the next Madoff?



Answer



There are a some information about Renaissance Technologies available in The Quants from Patterson.


Basically, and it's also what I heard in general, they are using intensively algorithmic trading, and from what I understood there are using Information Theory (they worked with Shannon if I remember well).



I'd say it'd be harsh to say it's the next Madoff given the background they have, I can easily see them being simply better than the rest...


It's just my opinion of course...


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