The Remarkable Rise of Renaissance Technologies

19min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

Explore the financial achievements of Renaissance Technologies, focusing on their sharp ratios and historical success in outperforming the market. Discover their decision-making on fund size, creation of new investment strategies like the Renaissance Institutional Equities Fund, and the strategic moves made to maintain exceptional returns even during volatile times.

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.