RenTech To Launch Stock, Futures Fund

Jan 18 2012 | 11:56am ET

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.


In Depth

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...