This interview is about quantitative investment strategy, career of the Trading Legend, James Simons. He is a mathematician who altered the game of trading. BIG TIME.
He went to MIT for a Mathematics undergrad, and UC Berkely for a Ph.D in Mathematics. He discovered the Chern-Simons secondary characteristic classes of 3-manifold and was elected to the National Academy of Sciences of the USA. Later, he worked for the National Security Agency (NSA) to break codes, then taught mathematics at MIT.
Most importantly, he then went on to found Renaissance Technologies in 1982 and currently has $110 billion in Assets Under Management.
He is often said to be the best money manager in history.
With a +71.8% avg return on assets from 1994 until 2014 (which is bizarre to think that if you were able to invest 1M in his fund, you’d make 710K in a single year, before fees, for doing nothing — after fees however, you’d probably only see a 35% return which is still stunning. Accounting for the 35% return, if you invested 1M in 1994, you’d have turned it into 400M in 20 years, or an avg of 20million a year, for zero work. Assuming you knew him, and had the credit available to get lended 1M, which actually isn’t that hard, this isn’t some possibility that is out of the relm of reality. The hardest part is having the exclusivity to-then lend his/or a similar fund your money especially since you’d be lending such a small amount of money. Still a cool idea nonetheless).
He had a hedge fund personal income of 1.6B in 2018 which was the highest of that year, followed by Ray Dalio at 1.26B.
Both guys incredible at what they do and have a HUGE impact on education in the US , by creating insightful educational videos or donating absurd amounts of money to educational programs and working to get higher qualified teachers in high schools — particularly for mathematics. Which, I find pretty cool since I personally spent a decent amount of time studying mathematics at CU.
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