Monday, 28 July 2014
Last updated 11 hours ago
Apr 20 2012 | 2:30am ET
Renaissance Technologies' first new hedge fund in five years is up and running, with $3.5 billion in initial assets.
The Renaissance Institutional Diversified Alpha Fund debuted on March 1, Bloomberg News reports. The fund, which invests in U.S.-listed stocks, futures and forwards, returned 3% in its first six weeks of trading.
The new fund, called RIDA, launched primarily with employee money, although some clients contributed and some came from existing funds. The quantitative vehicle could add asset classes beyond U.S. stocks and futures at a later date, RenTech told clients. It is not benchmarked, and backtesting showed an annualized return of 17.55% for the strategy since 1998.
RIDA is the first fund from RenTech since founder James Simons stepped down from day-to-day management of the firm two years ago. It is also the first since the much-ballyhooed launches of the firm's Institutional Equities and Institutional Futures funds in 2006 and 2007. Those funds boasted capacities of $100 billion and $25 billion, respectively, but never got anywhere near those figures due to poor early performance. RIEF did raise $26 billion, but now manages only $7 billion (RIFF manages $4 billion); it is up 11% this year.
RIDA gives RenTech a lineup of four funds, although its flagship Medallion Fund is open only to employees.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…