1988-2022
The hosts report Medallion's net annual return from 1988 to 2022 as 40%, about 68% before fees.
“during the entire lifetime so far of Medallion, from 1988 to 2022, that's 34 years, the total net annual return number is 40%.”
Topic
Medallion Fund
11 facts from 2 episodes, in date order. These are what speakers said on the shows, each linked to the moment it was said. They aren't independently verified.
1988
According to Gregory Zuckerman's book as read by the host, Renaissance Technologies' Medallion fund has averaged 66% annual returns since 1988.
“Since 1988, Renaissance's signature Medallion fund has generated average annual returns of 66%.”
1990
Medallion's 5% management fee was set based on roughly $800,000 a year of infrastructure costs.
“Strauss' infrastructure costs were about $800,000 a year. So they just backed into the management fee based on like, hey, we need $800,000 a year to run the infrastructure.”
1990
After the strategy change, Medallion cut its average holding time to about a day and a half and made profits almost every day for much of 1990.
“And they would cut Medallion's average holding time to just a day and a half, scoring profits almost every day for much of 1990.”
1993
Jim Simons closed Medallion to new investors at the end of 1993.
“At the end of 1993, Simons decides to close the fund and not allow new LPs in.”
1993
By the end of 1993, Medallion had grown to $280 million.
“By the end of 1993, Medallion had grown to 280 million.”
2000
Medallion returned 128% gross and 98.5% net in 2000, the year the tech bubble burst.
“And then in the year 2000, they just totally blow the doors off. 128% gross returns. Net returns after fees of 98.5%.”
2001
Medallion raised its carried interest to 36% in 2001, and to 44% in 2002.
“the next year in 2001, they raise the carried interest on the fund to 36%, up from either 20% or 25%, whatever it was before.”
2002
In 2002 Renaissance raised Medallion's investor fees to 30% of each year's profits, and later raised them again to 44%.
“In 2002, Simons increased Medallion's investor fees, goes all the way up to 30% of each year's profits.”
2003
Starting in 2003, Renaissance removed outside investors from the Medallion fund, leaving employees and select alumni.
“starting in 2003, everybody who's an outside investor, who's not part of the Rentech family, you know, current employee or alumni of the firm, gets kicked out.”
2003
Simons worried Medallion's performance would fade if it grew too large and preferred that he and his employees keep all the gains.
“Simons had worried that performance would ebb if Medallion grew too big, and he preferred that he and his employees keep all the gains.”
Episodes