RenTech Won’t Ax Institutional Funds

Sep 14 2010 | 11:34am ET

Renaissance Technologies has decided against shuttering its only two funds still open to outside investors.

The Long Island hedge fund giant’s new CEOs, Peter Brown and Robert Mercer, in March said they would consider closing the Renaissance Institutional Equities and Renaissance Institutional Futures funds. The two funds, launched with great fanfare in 2005 and 2007, have proven a disappointment and have badly lagged Renaissance’s flagship Medallion Fund, which is open only to employees and a handful of others.

But the two funds, which manage about $6.5 billion in assets, down from about $30 billion three years ago, have staged something of a turnaround this year. RIFF is up some 14% and RIEF 6% through August after the firm transferred staff from Medallion to the quantitative funds.

Both funds are well ahead of the average hedge fund, which has returned roughly 2% this year. But Medallion is still lapping them; it is up 22% this year.

In a letter to investors, Brown and Mercer, who took over from Renaissance founder James Simons at the beginning of the year, did say they would cut fees to “somewhat more competitive” levels, The Wall Street Journal reports. The funds currently charge 0.5% for management and 10% for performance.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…