1980s
Lenny Baum's large bet on government bonds went wrong and the portfolio fell 40%, after which Baum left Renaissance.
“Lenny goes super long on government bonds and the market goes against him and the whole portfolio drops 40%, which is wild.”
Topic
Renaissance Technologies
17 facts from 4 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.
1982
Jim Simons wound down Monometrics in 1982 and co-founded Renaissance Technologies with Howard Morgan.
“in 1982, Jim actually winds down Monometrics and he and Howard co-found a new firm together.”
1988-2018
The host says Renaissance Technologies' employee-only Medallion fund averaged a 66.1% annual return from 1988 to 2018.
“Averaged a 66.1% annual return from 1988 to 2018.”
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%.”
1996
Sandor Strauss sold his Renaissance shares and quit in 1996 after refusing to move to Long Island.
“In 1996, Strauss sold his Renaissance shares and quit.”
2000s
Renaissance's institutional funds charged a 1% management fee and 10% performance fee, far below Medallion's.
“on the institutional fund, the fees are 1 in 10. You're only taking 1% annual fee and 10% of the performance.”
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.”
2017
Jim Simons asked Bob Mercer to step down as co-CEO of Renaissance in 2017, after controversy over Mercer's political activity.
“Ultimately, Jim asked Bob to step down as co-CEO in 2017, which he did.”
2021
The IRS ruled in 2021 that Renaissance's basket option trades were not separate from the firm and said $6.8 billion in taxes was owed.
“the IRS said, no, you made all those trades. That was not a completely separate entity. And so you guys owed $6.8 billion in taxes that you didn't pay.”
Undated
Renaissance Technologies has fewer than 400 employees, about half in research and engineering.
“There are less than 400 employees that work at Rentech, only half of which work in research and engineering.”
Undated
Renaissance's website says it has 50,000 computer cores, 150 gigabits per second of connectivity and a database growing over 40 terabytes a day.
“they have 50,000 computer cores with 150 gigabits per second of global connectivity and a research database that grows by more than 40 terabytes a day.”
Undated
Jim Simons staffed his firm with mathematicians, physicists and computer scientists, working from an office in a Long Island strip mall.
“Working from a ramshackle office in a Long Island strip mall, Simons hired mathematicians, physicists, and computer scientists”
Undated
Simons's team later found weekly stock trading data going back as far as the 1800s.
“Some of the weekly stock trading data they later find went back as far as the eighteen hundreds”
Undated
A data entry error once led Renaissance's fund to buy five times as many wheat futures contracts as intended, pushing prices higher.
“A data entry error caused the fund to purchase five times as many of wheat futures contracts as it intended, pushing prices higher.”
Undated
Michael Lewis called how Renaissance Technologies makes its returns one of the two great mysteries on Wall Street, along with the identity of Satoshi.
“It's one of the two great mysteries on Wall Street. How they do what they do. And who is Satoshi.”
Episodes