The Plateau: Medallion Fund

Jim-Simons1-e1351534920799Jim Simons is one of the richest men on the planet. The reason is his high performing and highly envied hedge fund, Medallion Fund, which has not realized negative returns since 1990. Jim Simon’ Medallion Fund is the best hedge fund Insider Monkey has come across. In 2007, Simons returned 73% and in 2008 he returned 80%. The return is exceptional as such incomparably high returns were realized during the time of the financial crisis. We believe if he had started investing 20 years before he did, he would be the richest man on this planet today.

 

Jim Simons exploits market inefficiencies through high frequency trading. He makes use of algorithms to assist in execution of large orders. Consequentially, Medallion faces high expenses and transactions costs. This explains the higher than average performance fee of 44% that Medallion charges. However, the 44% fee is quite irrelevant considering the fact that the fund’s investors are current and past employees and their families. Jim Simons is the largest investor of Medallion and owns approximately 25-50 percent of Renaissance Technologies.

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