In the midst of what to some observers looks like a shrinking of the hedge fund industry, Renaissance Technologies, LLC, seems to be an exception.
Renaissance uses closely held computer models and alogorithms to pick its bets. After a period of inconclusive results, the fund seems to have finally found its legs. For over a year already the firm has posted better than the market gains.
Their good results is attracting new money, to the tune of $7 billion this past year, mostly from wealthy clients of UBS Group AG, Citigroup Inc, and others. The fund now manages over $36 billion, up from $27 billion last year. That includes a $1 billion return to investors from its signature Medallion fund, which is now not taking new investors.
The success of Renaissance is one more bit of evidence that quantitative funds can, and do, beat traditional investing methodologies.