Renaissance Technologies in March will launch its first new hedge fund in five years, focusing on U.S. stocks and futures.
The East Setauket, N.Y.-based firm said the new Institutional Diversified Alpha Fund will begin trading U.S.-listed equities, futures and forwards, but could add other asset classes in the future, Bloomberg News reports. The new fund will not be benchmarked, and RenTech said it would likely have greater volatility than the firm's existing Institutional Equities Fund.
According to a marketing document, backtesting has produced an annualized return of 17.55% for the strategy since 1998.
Institutional Diversified Alpha is the first fund for RenTech since the launch of its Institutional Equities and Institutional Futures funds in 2006 and 2007. The former boasted a $100 billion capacity and the latter $25 billion, although poor early performance ensured that neither got anywhere near those caps. It is unclear what the Institutional Diversified Alpha fund's capacity is.
The fund is also the first new product from RenTech since founder James Simons retired from day-to-day management of the firm at the end of 2010.
Institutional Diversified Alpha will charge 1% for management and 10% for performance.