Sunday, 28 December 2014
Last updated 3 days ago
Aug 10 2007 | 6:44am ET
Even the most storied hedge funds are not immune to the sub-prime bug. Renaissance Technologies, the wildly successful $30 billion quantitative shop run by math-professor-turned-investor James Simons, was down between 3.9% and 4.6% in July, and the early going in August has been even worse.
Simons, in a letter to invests, called the July results “quite disappointing.”
The negative returns, which vary between the onshore and offshore versions of the fund, and between series, dragged year-to-date returns to 1.49% at best and just 0.19% at worst. And the roughest days may still be ahead: The Renaissance Institutional Equities Fund is down about 7% this month-to-date.
“Regrettably, we have not had good luck during these last few days of August,” Simons wrote. “We have been caught in what appears to be a large wave of de-leveraging on the part of quantitative long/short hedge funds.”
Simons blamed the poor performance on Renaissance’s Basic System—“the platform upon which almost all of our predictions are added”—saying it “experienced meaningful relative losses during the first two weeks” of July.
“The predictions themselves performed adequately during the month, but not sufficiently to overcome the down-draft in the Basic.”
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.