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martin1975

> But only to the select few who are in the right product or looking at the market in the right way.

like RenTec/Medallion... who sometimes look too good to be true, then again, if they were doing something illegal for 30+ years, you'd think by now they'd be caught. The only alternative explanation is they indeed have a unique model of the markets they continuously refine that allows them to outperform most everyone.

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Most money in Medallion is from employees with a bit from friends and family. You can't invest in it at all, because they don't need or want your money. If they're fooling anyone, they're just fooling themselves, or maybe using it as marketing for their other funds.

In absolute terms Renaissance isn't even spectacular. There are capacity constrained traders whose Sharpe Ratios and return on capital are multiples of RenTech's. What's impressive is that they manage to do it with a billion dollar AUM. That's small compared to some of the biggest HFs, but far more than a typical high turnover strategy can put to use.

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