Renaissance Technologies LLC

>Renaissance Technologies LLC

>From 1994 through mid-2014 it averaged a 71.8% annual return

>Founded by a prize-winning mathematician

What kind of black magic are they using?

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en.wikipedia.org/wiki/Occam's_razor
mysteriousuniverse.org/2017/04/17-15-mu-podcast/
youtube.com/watch?v=QNznD9hMEh0
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hft and other jew tricks

Non-public algorithm written in a custom programming language that can accurately predict the market. Also tons of insider information.

They approach the market from a purely scientific perspective and don't hire anyone that even looks like a traditional Wall Streeter.

They've also been using "big data" since the 80's and have, at this point, basically broken the market.

this.

its an insider trading knowledge pool. The way it works is you spill your beans, and in return others spill their beans. Everyone gets rich except the common investor which gets justed. there's no magic here

It's unironically a Bernie Madoff-style Ponzi scheme.

they find correlations in big data and the algorithm adjusts accordingly

>correlations in big data

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>Year of the Lord 2008

>Everybody is losing money

>Renaissance Technologies' Medallion fund is making dough like crazy

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The streams still cross...

They hire science nerds. I think they just tell them to come up with a correlation thesis and then they test it and if it comes off they invest that thesis.

So you have 100 different +% returns running at once, some profit, some lose, but the cumulative result is lots of profit.

That's my theory anyway

After Long Term Capital Management blew the fuck up and the Fed and major banks had to bail it out, a new "prestige" hedge fund was chosen that would be basically one with the Fed and the major Mutual Funds. It's all part of the rigging process. There's nothing special about what they do other than the fact that they have a line in to the Fed and big mutual funds about when it's time to buy and when it's time to sell. The markets aren't some mystical force that you can come up with some secret math formula and predict. That's all part of the mythological bullshit they shovel you. The truth is that they simply prey on outsiders. If your money isn't in a mutual fund or a predetermined hedge fund, you are nothing more than a liquidity provider for their nonsense. U.S. markets are totally compromised and most of the great fund managers are insider traders that just never got caught. That feeling that you're having as you read this, feeling like it would depress the shit out of you if it was true. That's how you know everything I'm saying here is true. The world isn't some fairy tale. I mean for fuck's sake. Ray Dalio and his "oh transcendental meditation is the reason I'm a multi-billonaire." Are you kidding me? That's like attributing your success as a venture capitalist to your midichlorian count. They're playing everybody. The game is rigged to fuck and back. Remember that.

They are 100% quant, math, physics comp science PhD/genius working hard. Will win every time against any other people (Econ, business and all this types of bullshit degree's)

Too bad they are all virgins.

this is the only answer

these too combined. they hire the smartest people who are best at cheating the system

>with le custom programming languajjjeeeee
normies should die

Insider Trading. Its always insider trading. They just come up with models that support the information they have so when they are investigated they can show them the models and sources.

That is literally all it is.It isn't super technology it is just a really well run scam.

>he can't write his own language
Sad

I don't think they would be so good at hiring and retaining PhD superstars just for money alone. They could do just as much (or close enough but with an interesting job) at literally any tech company or quant firms like two sigma, or doing prop trading at Jane Street.

For sure if employees were making billions I would understand but their bonuses are probably (max) high single digit/low double digits millions.

imbecile

Little do people know the former ceo Mercer funded Trump's campaign lol. The new CEO is dem. So you know who will have the lobbying power

Based and redpilled

This is unfortunately probably the most true answer

en.wikipedia.org/wiki/Occam's_razor

It's a ponzi scheme. They have a fund open to the public but it is not doing well. Why?

Because they assign their losing trades to the public fund and winning trades their private Medallion fund.

user, creating custom programming language is a project every undergrad on any reputable CS course have to do to pass, also what is wrong with having a domain specific language?

here's a really fucking simple way of putting it that seems like in a million years wouldn't occur to you TA voodoo adherents: the price of a stock going up or down is correlated with other fucking things than the past price of that stock. A lot of other things. Other signals that you can access just as well as you can the past price of the stock. And if you are clever and well resourced, you can take them into account and have an (actual) edge over random chance on the bet.

mysteriousuniverse.org/2017/04/17-15-mu-podcast/

They talk about it.

Basicallly they gather data on every little thing and have been doing so since founded. They also employ PHD / elites of the fields to help with their models. I mean ANY DATA point. Like Italy is sunny at 23 degrees and the stock market moves up 1%. Thats a data point.

Also multiply this since like 1980s or whenever he founded it. But yes OP, it’s almost black magic. It’s getting into fractal math at that point.

>duh why dey do dat can't u just look at past prices of one stock duh even though it's a simple mathematical proof that there's no way for the past values to be correlated with future movement at all
- fucking disgusting slime molds of people

>fractal math
what about fuzzy math? what about crusty math? what about skidmark math? why do you fucking speak when you don't even know what the words mean that you use

Somebody still has to come up with the thesis.

Or I suppose you could then just write some program that identifies correlations then runs simulations on whether it would've been profitable over X timeline

But then why the need to keep hiring people? I always assumed the hiring people part was to get new thesis ideas of correlations

you're delusional.

renaissance is chad. his dick gets sucked, yours doesn't, this is the way of the world user.

Imagine being this fucking stupid

cos?

why is everyone saying they hire top tier PhDs? except for the small minority who hold a PhD the rest have masters at best

Academics make terrible investors.

They probably have some model with a correlation, and then they run that model with some hedges, find a small inefficiency in the market and then hit it with big time leverage.

Kind of like LTCM did.

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the logic of retards in this thread
>hurr durr it's insider trading
>the entire company is comprised 100% of incels with PHDs in math and physics that could be of no possible use when it comes to insider trading
>they keep hiring said incels because they're stupid and they need to keep the masquerade going for the past 40 years

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but doesn't it actually make it harder? the more data you have the more likely you are to find random correlations - like the apple stock just happens to follow price of butter in Kazakhstan

Maybe the humans are required to identify and explain/evidence/argue why the correlation is causal rather than arbitrary so it can be relied upon

I'm all in on Kazakh butter futures

>you are nothing more than a liquidity provider for their nonsense
this part of the pasta, kek

Simons claims that over time they built sophisticated tools and figured out which data to track that might indicate how the market will move, and ways of testing them, etc. But really, it's probably just highly sophisticated insider trading and tax schemes. The "everyone is a PhD or genius we hate Wall Street types" shtick is just a cover for it, I reckon. But what does it matter? Even if it were true Simons would die before it's ever revealed anyway.

Interesting that Robert Mercer worked there and also owned Cambridge Analytica the data mining company behind UKIP/Trump campaign. Maybe Rentec uses data in a similar way that Cambridge Analytica did.

They don't patent any of their stuff since others would copy it and the secret would be out

I bet Google could create an extremely successful hedge fund

yes

retard alert

How sophisticated could they have been in 1994? Processing power and storage was shit and all the data available then would be available today for free surely

Not really related but I was watching an interview the other week with Jim Ratcliffe and he said he knew before the financial crisis that things were meltdown because orders had dropped off. So they knew over 6 months in advance that things weren't looking good because it reflected that in their own books before anything really went into meltdown.

Really makes u think

obviously it's relative. the dick swingers didn't even own a fucking computer in 1994

Whatever they were doing in 1994 is surely more profitable today than a random chance investment and is still worthwhile for almost everyone

what you never kept your gains? guys this is only half true. i dont ever lose in crypto. i fucking wake up sweating and in chills when the btc price is about 30 minutes from dropping. thats my insider trading. 2006 oldfag here. and i hit every major pump and shorted every major dump. the math im using is BASIC. the automated systems im using are LAUGHABLE. im running y stuff of a bunch of old laptops. and ive been printing as much gains as i want since 2011. brainlet btfo. and theres plenty of others here who have the same case. DONT LISTEN ANONS , this guy wants smarties to quit the markets. he wants all the anons to suffer with noinvestments like he does

so i don't understand.. you guys think to get gains requires "insider trading" or some kind of rigging conspiracy, because correlations on vast amounts of relevant data, very intelligently processed, isn't enough alone to beat the market.. yet you think YOU, looking only at the *past prices* of bitcoin, can make a good, worth-betting-on prediction about where the price will go. How the fuck does that work?

>implying i have ever bought any crypto

I should have, obviously, in hindsight recognised that although I percieve something to have no value does not mean others percieve it to have no value.

For people doing physics here, this is actually Simons from Chern Simons topological quantum field theory.
Btw., I'm on the phone but somebody may post that numberphile interview with him, it's pretty cozy. That said, he's a multibillionair, but his possibilities led to his son doing extreme story stuff and reking themselves, his life is probably tainted

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extreme sports*

Yeah, at the time he didn't know it would be useful though. He also did top secret work, etc.

>led to his son doing extreme story stuff and reking
Forgot about that. Both of his sons died in ""accidents""

The interview:
youtube.com/watch?v=QNznD9hMEh0

It's still only "useful" for academia, what's mean is that he was surprised it's used in physics theory

t. PhD in physics theory

simmons is not even anymore part of reneissance, secondly they became hft company making not really what you think of "trading". that is what they used to do when markets very highly inefficient you could be profitable even with most basic quantative trend following systems in the 80's

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source?

>Will win every time against any other people
except DEEZ NUTS

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So what you're saying is the most successful hedge fund of all time entirely staffed by academics is... terrible investing??

They're successful until the model fails under some scenario which they never considered and they wipe out several billions in capital and have to get bailed out by the Fed.

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Highly unlikely though isn't it really

they should immediately hire you to show them how to trade

>he doesn’t know what statistical arbitrage is

how do i invest in them?

ponzi...

Their fund is private and open to employees only. They have a public fund but its returns are shit. Which makes them suspicious.

See my comment Also, James Simon is no longer in any executive or operational roles. It's fully run by Robert Mercer, a powerful Trump supporter who funded Cambridge Analytica.

>It's fully run by Robert Mercer, a powerful Trump supporter who funded Cambridge Analytica.
Except it's not

Crypto markets have shit-all liquidity and a lot of clueless idiots investing. In regular trading you have to compete with teams of PhD armed with supercomputers, in crypto you're competing with 4channers

You can’t. But at least they divest off you.

the fact that both of those opinions are posted here doesn't mean it originated from the same people