Two Sigma Investments Delivered Great Returns in 2014

January 19, 2015 James Heinsman Hedge Fund News

Quantitative Investing Pays Off for Two Sigma

Quantitative Investing Pays Off for Two Sigma

New York-based Two Sigma Investments, managed by John Overdeck and David Siegel, had an exemplary year in 2014.

The firm’s Two Sigma Enhanced Compass fund appears to be one of the best performing hedge funds in 2014, returning 57.55 percent, according to an investment report which Forbes reviewed. A sister fund, the Two Sigma Compass Fund netted 25.56 percent. The two funds together, Two Sigma Compass strategy, manages over $5 billion.

Two Sigma utilizes quantitative investment strategies, and has distinguished itself by its excellent performance in 2014 from the vast majority of hedge funds, which were struggling for most of the year.

Two Sigma was founded in 2001 by Overdeck and Siegel, both of who having been previously employed at DE Shaw & Company in high-level jobs. DE Shaw is seen by many as a pioneer of the quantitative hedge fund business.

Other funds at Two Sigma did not perform quite as dramatically, but still posted great returns by most standards. The Two Sigma Absolute Return fund brought in net returns of 10.06 percent in 2014. Two Sigma Horizon fund netted 14.43 percent last year, nothing to be ashamed of.

David Siegel, DE Shaw & Co, John Overdeck, quantitative investment strategies, Two Sigma Investments,

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