Sunday, February 5, 2023
  • Login
198 Crowd Funding News
No Result
View All Result
  • HOME
  • VIDEO
  • CROWD SUPPORT
  • ARTICLES
  • NEWS
  • BLOG
  • ADS
  • CROWDFUNDING SOURCES
  • BOOKS
  • SPONSORSHIPS
  • CONTACT
  • HOME
  • VIDEO
  • CROWD SUPPORT
  • ARTICLES
  • NEWS
  • BLOG
  • ADS
  • CROWDFUNDING SOURCES
  • BOOKS
  • SPONSORSHIPS
  • CONTACT
No Result
View All Result
198 Crowd Funding News
No Result
View All Result
Home Crowdfunding News

Investing Firm Renaissance Technologies, which Recorded Worst Returns Ever Across Hedge Funds, to Deal with $5B in Redemptions

February 9, 2021
in Crowdfunding News
0
Share on FacebookShare on TwitterShare on Email

[ad_1]

Renaissance Technologies, the investing firm that recently recorded its worst returns across its public funds, is now having to deal with around $5 billion in redemptions.

Customers decided to pull about $1.85 billion across the three different hedge funds back in December 2020 and also reportedly requested another $1.9 billion last month, according to Bloomberg which had reviewed several investor letters. 

Investors are expected to take out another $1.65 billion this month alone, the letters revealed.

These numbers might change, however, if there are new inflows this month or if investors decide to reconsider their redemption requests.

Billionaire Jim Simons’ company, a quant-investing specialist, has had quite a challenging 2020. The firm’s three public hedge funds recorded major losses last year as their algorithms could not effectively address or deal with the wild market swings. The computing algorithms had never really seen the type of market volatility created due to the global COVID-19 outbreak. 

At the same time, however, its employees’ fund and insiders surged over 75% in 2020, Institutional Investor confirmed.

Renaissance’s Institutional Equities fund, which is by far the largest of the external investment vehicles, lost 19% of its total value last year, the letters revealed. That particular fund was hit with the largest size of the total redemptions. Meanwhile, the Institutional Diversified Alpha fund declined 32% and the Institutional Diversified Global Equities fund dropped 31%.

A representative for the East Setauket, New York-headquartered company has not yet decided to share further details on the matter.

Renaissance informed its clients in a September memo that its substantial losses were because of being under-hedged during the historic March 2020 market collapse and then became over-hedged during the (semi) recovery from April-June of last year. This all took place due to the firm’s trading models that “overcompensated” for the original issues, the letters noted.

Renaissance’s management stated in a December 2020 notice:

“Although recent performance has been terrible and worse than prior performance would have suggested was likely for 2020, [the model] anticipates that in track records as long as ours, some risk-return ratios every bit as bad as the ones we are now seeing are not shocking.” 

The main lesson or takeaway here is that “one should expect even good investments to perform horribly from time to time.”

Renaissance is notably one of the largest quantitative hedge fund companies in the world. It was established in 1982 by Simons, an ex-codebreaker for the National Security Agency. 

In January 2021, he had confirmed his decision to leave his role as chairperson of the company, which managed around $60 billion in assets at that time. However, he has decided to stay on as a board member.



[ad_2]

Source link

Tags: dealFirmFundsHedgeInvestingrecordedRedemptionsRenaissancereturnsTechnologiesWorst
ShareTweetSend

Related Posts

Crowdfunding News

Learning To Play Piano Is Made Easy With PopuPiano

June 3, 2022
Crowdfunding News

Solana Teaches Crypto Investors a Critical Lesson

June 3, 2022
Crowdfunding News

Caught naked!? | Crowdability

June 2, 2022
Crowdfunding News

EP #395 The Formula Nebia Towel Used To Raise $167,750 On Kickstarter

June 2, 2022
Crowdfunding News

News Fix: Startups Face a Souring Economy, SpaceX Skyrockets to $125 Billion

June 1, 2022
Crowdfunding News

Top 5 Crowdfunding Campaigns – May 2022

June 1, 2022
Load More
Next Post

Goldman Sachs Partner and Head of Product Adam Dell Leaves Leadership Role on Marcus as Bank Changes Consumer Business Strategy

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

LATEST STORIES

Between Music – Crowdfunding video

June 5, 2022

Attacking A Market Failure With Candice Matthews Brackeen

June 5, 2022

Crowdfunding video – Kabeção 1st solo Album – Touching Souls

June 5, 2022

The Gecko – Failure is not an option

June 5, 2022

Roller Kingdom Crowdfunding Video

June 4, 2022

Introduction – Art of Failure with Eli Zelkha

June 4, 2022

Radbahn Crowdfunding Video + Fast Forward Science 2017 Film

June 4, 2022

Jorge Newbery at Failure Lab

June 4, 2022

Outland Denim Equity Crowdfunding Video

June 4, 2022

What I learned about Failure, Loneliness, and Red Lizard at the Spark Fest Cebu

June 4, 2022
Load More
198 Crowd Funding News

Own and operated by The Ike Lemuwa Group, LLC a Commonwealth of Virginia Limited Liability Company, USA.
Info@nigeriasmartnews.com / info@ikelemuwagroup.com
Toll-Free: 1 888 642 8433
3821 Dominion Drive Dumfries, Virginia, 22026. USA

Categories

  • Home
  • Crowdfunding News
  • Blog
  • Articles
  • Sponsorship
  • Crowd Support
  • Crowdfunding Sources
  • Partner with 198TILG Mastermind Platinum Group
  • Video

Recent News

  • Between Music – Crowdfunding video
  • Attacking A Market Failure With Candice Matthews Brackeen
  • Crowdfunding video – Kabeção 1st solo Album – Touching Souls
  • The Gecko – Failure is not an option
  • Roller Kingdom Crowdfunding Video
  • Home
  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact

Copyright © 2021 198 Crowdfunding News.

No Result
View All Result
  • HOME
  • VIDEO
  • CROWD SUPPORT
  • ARTICLES
  • NEWS
  • BLOG
  • ADS
  • CROWDFUNDING SOURCES
  • BOOKS
  • SPONSORSHIPS
  • CONTACT

Copyright © 2021 198 Crowdfunding News.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In