Renaissance Technologies Explained

Renaissance Technologies is an East Setauket, New York-based American investment management firm founded in 1982 by James Simons, an award-winning mathematician and former Cold War code breaker, which specializes in systematic trading using quantitative models derived from mathematical and statistical analyses. Renaissance is one of the hedge funds using quantitative trading — known as “quant hedge funds” — that rely heavily on powerful computers and sophisticated mathematics to guide investment strategies. (Everything Explained Today)

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The Quants Are Taking Over Wall Street

Today, Two Sigma is the fastest growing hedge fund on Wall Street. It manages some $35 billion and made its two founders, Siegel and John Overdeck, billionaires themselves. Quant funds like those managed by Two Sigma and Renaissance Technologies have been consistently posting solid returns in recent years while most other hedge fund strategies centered around the trading decisions of human beings have struggled mightily. (Forbes)

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This Legendary Hedge Fund Hopes to Use Physics to Battle Wall Street’s Speed Demons

Renaissance Technologies, the investment fund known for its ultra-educated workforce and quant trading style, has a plan to beat high frequency traders at their own game. Their plan involves algorithms, servers and the world’s most accurate timekeeper currently used for GPS satellites and deep space exploration, the atomic clock. (Fortune)

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Legendary Hedge Fund Wants to Use Atomic Clocks to Beat High-Speed Traders

Patent application no. 14/451,356 has one goal: to outrun the speed demons of Wall Street. The 16-page document was quietly published by the U.S. Patent and Trademark Office in February. Replete with schematic drawings, the filing describes a novel way for “executing synchronized trades in multiple exchanges.” The invention consists of not only sophisticated algorithms and a host of computer servers, but atomic clocks to sync orders to within a few billionths of a second. (Bloomberg)

Top 25 hedge fund managers earned $13bn in 2015 – more than some nations

The world’s top 25 hedge fund managers earned $13bn last year – more than the entire economies of Namibia, the Bahamas or Nicaragua. Kenneth Griffin, founder and chief executive of Citadel, and James Simons, founder and chairman of Renaissance Technologies, shared the top spot, taking home $1.7bn each – equivalent to the annual salaries of 112,000 people taking home the US federal minimum wage of $15,080. (The Guardian)

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Legendary hedge fund manager Jim Simons made $1.7 billion last year ― here’s how he went from the NSA to Wall Street

Jim Simons, founder of hedge fund Renaissance Technologies, is notoriously press shy. But in September 2015, he gave a rare interview to TED’s Chris Anderson to talk about his past and how it led him to the unprecedented success in the hedge fund industry. (Business Insider UK)

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