From Academia to Trading: Building a Mathematical Powerhouse

21min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

The chapter follows the journey of an esteemed mathematician from his turbulent academic experiences to founding a successful trading operation with a team of loyal mathematicians. It explores the evolution of Renaissance Technologies from manual trading to sophisticated data-driven strategies, merging expertise in quantitative trading and technology investing. The narrative highlights significant events, challenges faced, and transformative moments that shaped the firm's success and laid the foundation for groundbreaking investment returns.

Renaissance Technologies is the best performing investment firm of all time. And yet no one at RenTec would consider themselves an “investor”, at least in any traditional sense of the word. It’d rather be more accurate to call them scientists — scientists who’ve discovered a system of math, computers and artificial intelligence that has evolved into the greatest money making machine the world has ever seen. And boy does it work: RenTec’s alchemic colossus has posted annual returns in the firm’s flagship Medallion Fund of 68% gross and 40% net over the past 34 years, while never once losing money. (For those keeping track at home, $1,000 invested in Medallion in 1988 would have compounded to $46.5B today… if you’d been allowed to keep it in.) Tune in for an incredible story of the small group of rebel mathematicians who didn’t just beat the market, but in the words of author Greg Zuckerman “solved it.”

Sponsors:

Many thanks to our fantastic Season 14 partners:

Links:

Carve Outs:

More Acquired:

Get email updates with hints on next episode and follow-ups from recent episodes
Join the Slack
Subscribe to ACQ2
Check out the latest swag in the ACQ Merch Store!

‍Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.