Renaissance Shuttering $1B Institutional Futures Fund For 'Lack of Interest'

Oct 13 2015 | 5:40pm ET

Quantitative investment manager Renaissance Technologies is planning to close an underperforming $1 billion hedge fund due to lack of interest.

The company’s Institutional Futures Fund will be shuttered by the end of the month, according a letter seen by Reuters. It is down 1.75% so far this year through September, and has booked average annualized net returns of 2.86% since inception in 2007. 

With $27 billion in assets under management, Renaissance is one of the largest and best-known hedge fund managers that rely on computer models to drive trading. Its flagship Medallion fund is only open to insiders and has $10 billion AUM, while the Renaissance Institutional Equities fund (the only one open to outside investors) has $10.5 billion in AUM and is up an impressive 11.2% so far this year.

"Due to a lack of investor interest, we have decided to wind down the Renaissance Institutional Futures Fund," the letter reportedly said. The vehicle’s lagging performance was apparently not the key reason for the decision, noted Reuters. Instead, the firm has kept the fund open in order to accommodate investors who wanted a pure futures portfolio, but demand for such an offering had dried up.

Based on Long Island, NY’s North Shore, Renaissance was founded in 1982 by renowned mathematician James Simons after his stints as an NSA cryptographic specialist and professor at Stony Brook University. He built the organization into one of the most successful hedge funds in history, overseeing more than $27 billion in mostly quantitative strategies. He retired from Renaissance in 2010, and the firm is now managed by Peter Brown and Robert Mercer.

 


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