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HenryTo
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 Posted: Mon Mar 10, 2008 2:01 pm Post subject: Renaissance Technologies |
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Following is courtesy of P&I online. Many folks who have traditionally done well are having a tough time this year:
http://www.pionline.com/apps/pbcs.dll/article?AID=/20080303/PRINTSUB/961729624/1039
| Quote: | Wealthy investors flee Renaissance
Quant fund loses 32% in redemptions after market turbulence whipsaws performance
By Christine Williamson
Posted: March 3, 2008, 6:01 AM EST
Stephen Robert feels some investors didn’t really understand the strategy.
NEW YORK — Renaissance Technologies Corp.'s grand experiment — a quantitative net long hedge fund designed to manage as much as $100 billion — lost about one-third of its assets since August because of hot-footed wealthy individual investors.
Assets in the Renaissance Institutional Equities Fund dropped 32% to about $19 billion from a high of around $28 billion, the result of massive redemptions after performance was whipsawed by last summer's rough markets (Pensions & Investments, Aug. 20).
Performance for the year was flat, gross of fees; after fees, the fund was down 0.93%.
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RIEF's performance target is 500 basis points annually above the return of the Standard & Poor's 500 index, gross of fees, with lower volatility — 10.5 compared with the S&P 500's historical volatility of between 15 and 16. Because the fund is 100% net long (175% long, 75% short) with beta of 0.4, Mr. Robert said it does reflect market drops, although the extent of the downside is lessened.
RIEF was seeded with about $600 million of company and partner money on July 1, 2005, and has outperformed every year but the most recent one, averaging between 450 and 500 basis over the S&P 500 since inception. |
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HenryTo
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Posts: 11742
Location: Los Angeles, California
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| Posted: Mon Jan 05, 2009 2:43 am Post subject: |
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Renaissance waives the fees on one of its funds. On the other hand, its flagship fund, the Medallion Fund is still doing very well, up 80% for 2008:
http://online.wsj.com/article/SB123111803544652709.html?mod=testMod
| Quote: | Mr. Simons recently told investors in his year-old futures fund, Renaissance Institutional Futures, that he was waiving the 1% fixed management fee this year following poor performance in 2008.
That 12-month fee break equates to about a $30 million price cut from what investors in the $3 billion fund would have paid. The discount applies even if the fund delivers good results in 2009.
In addition, the fund will have to make back losses before investors must pay performance fees or share the fund's profits with its managers. A spokesman for Mr. Simons declined to comment.
"Less than stellar" is how Mr. Simons termed the futures fund's 12% decline in 2008, according to a Dec. 31 letter to clients. |
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HenryTo
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HenryTo
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rffrydr
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