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By Gontran de Quillacq
On June 22, 2021

Renaissance underperformance and redemptions – not for everyone

Medallion is Renaissance’s flagship fund. It was up 75% in 2020. Unfortunately, it manages only the employees’ money. All the other investors were down ~30% during the same period. Not as great. Redemptions ensued. $11 bn of redemptions now.

Jim Simons - RenaissanceBloomberg reports that Renaissance suffered another large outflow in April, bringing the total to $11 bn since December.

 RenTech redemptions by month

 

 

 

 

 

This being said, not all Renaissance Technology funds are equal:

  • The fund which manages the money from Jim Simons and the employees only, Medallion, was up 75% in 2020 and is flat this year. It saw no redemption. 
  • RIEF, RIDA and RIDGE, which manages the assets from every other investors, which were down 20-30% last year and are slightly up in 2021. That’s where the redemptions were.
  • The three funds’ AUMs are now 25%, 50% and 43% lower respectively, after the combined effects of the underperformance and the redemptions.

Sure, most quant funds didn’t do so well recently, and there has been an estimated $170 bn of redemptions in the segment, but investors don’t like very much that their fund underperform the management’s fund

 

 

Bloomberg - Renaissance Suffers $11 Billion Exodus With Meager Quant Returns

4 Responses

  1. Apparently the funds which lost are using the “Same” model as the Medallion Fund. Sometimes I wonder if the Medallion Returns are even true. How can there be such a large dissonance from Medallion to the rest – Weird.

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