1/Today in @bopinion, I talk about the legacy and career of Jim Simons, the founder of Renaissance Technologies, who is stepping down as the hedge fund's

2/Simons' fund beat the market -- consistently, by huge percentages, after fees.

That's an astonishing accomplishment.

https://t.co/uopG6WutzU
3/How did he do it?

Basically, by being relentlessly smarter and better-managed than the competition.

https://t.co/p6ZTd7POfQ
4/So does Simons' success mean markets are inefficient?

Yes and no.

Obviously yes, since Renaissance could (and can) beat the market. But there are a few key caveats...
5/First of all, RenTech's most eye-popping and consistent returns are in its flagship Medallion Fund.

But most investors can't invest in that fund. It doesn't take your money.

https://t.co/sTXUzl09Lc
6/In fact, the Medallion Fund doesn't even take *its own* money. It makes regular profit distributions, so that the fund's total size remains small -- around $10 billion or so.

https://t.co/bhqE71eSdH
7/This means that the Medallion Fund's famous 39% annualized return (after fees) doesn't compound.

If it did, Medallion would be worth far more than all the rest of the hedge funds in the world combined, by now!
8/So a fund like Medallion isn't really comparable to, say, the return of the S&P. One compounds, the other does not.

Why? Because the market inefficiencies Medallion exploits are limited in size. And thus, Medallion's profit opportunities are limited in size.
9/To address this, Renaissance made a bunch of other funds that do different things than Medallion, and whose strategies scale up more. These have done generally well, but they're no Medallion...

https://t.co/ZsXQ4NNUI8
10/Even as Medallion racked up huge gains in 2020, Renaissance's other funds largely tanked.

This shows that consistently beating the market AT SCALE is incredibly hard, even for the smartest and best-managed people on the planet.

https://t.co/oowJd3k8GH
11/That's no knock against Renaissance, of course. They're the best in the biz.

But it does mean that Renaissance's existence doesn't prove that stock markets are inefficient. Indeed it shows us just how not-so-hugely-inefficient they are!

(end)

https://t.co/uopG6WutzU

More from Noahtogolpe 🐇

Yes, we have been more divided than we are now. Within living memory.


Labor disputes used to kill hundreds of people!

In 1932 Douglas MacArthur called in tanks on protesting veterans, injuring over a thousand people!

In 1967 there were 159 race riots in cities across

In 1921, rioters used airplanes to bomb black businesses in Tulsa, Oklahoma! Hundreds were killed in the riot!
Time for panel #3: Big Tech and regulation!

I will be live-tweeting again, and you can also watch video at either the Twitter or Facebook links below!


Kaissar: Every industry gets regulated when it gets big. The question is what kind of regulation Big Tech will get,and whether the companies will be proactive in shaping it.

Kaissar: More profitable companies have higher returns. Why? Maybe it's a risk factor, because more profit = higher risk of getting regulated.

Bershidskyis showing a diagram of GDPR complaince pop-ups. What a massive ill-conceived bureaucratic mess.

Ritholtz: It's 2018 and we're still talking about Facebook privacy settings?! If you're still giving your personal data to Facebook, you just don't care about privacy!

More from Government

1.
Act of 1871
This is VERY Long but it will end with a MEGA BOOM!
Bookmark it and read it in small bits to digest it all.

This info, comes from some reputable anons and my own digging, compiled together as a superthread!
InevitableET, IPOT... to name a few.

2.
https://t.co/udep5WEYUp
https://t.co/bnzeQek6zv


3.
The TL; DR version is they, by military force, and illegitimate legislature, amended the constitution against the will of The People and legally tricked us into becoming unwitting indentured slaves of human capital and resources to THE UNITED STATES OF AMERICA the corporation)

4.
Republic vs Democracy
-They needed to get away from the Republic and create a Democracy in order to drive us towards socialism and inevitably a dictatorship (National Socialist Party aka NAZI)


5.
Flag

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प्राचीन काल में गाधि नामक एक राजा थे।उनकी सत्यवती नाम की एक पुत्री थी।राजा गाधि ने अपनी पुत्री का विवाह महर्षि भृगु के पुत्र से करवा दिया।महर्षि भृगु इस विवाह से बहुत प्रसन्न हुए और उन्होने अपनी पुत्रवधु को आशीर्वाद देकर उसे कोई भी वर मांगने को कहा।


सत्यवती ने महर्षि भृगु से अपने तथा अपनी माता के लिए पुत्र का वरदान मांगा।ये जानकर महर्षि भृगु ने यज्ञ किया और तत्पश्चात सत्यवती और उसकी माता को अलग-अलग प्रकार के दो चरू (यज्ञ के लिए पकाया हुआ अन्न) दिए और कहा कि ऋतु स्नान के बाद तुम्हारी माता पुत्र की इच्छा लेकर पीपल का आलिंगन...

...करें और तुम भी पुत्र की इच्छा लेकर गूलर वृक्ष का आलिंगन करना। आलिंगन करने के बाद चरू का सेवन करना, इससे तुम दोनो को पुत्र प्राप्ति होगी।परंतु मां बेटी के चरू आपस में बदल जाते हैं और ये महर्षि भृगु अपनी दिव्य दृष्टि से देख लेते हैं।

भृगु ऋषि सत्यवती से कहते हैं,"पुत्री तुम्हारा और तुम्हारी माता ने एक दुसरे के चरू खा लिए हैं।इस कारण तुम्हारा पुत्र ब्राह्मण होते हुए भी क्षत्रिय सा आचरण करेगा और तुम्हारी माता का पुत्र क्षत्रिय होकर भी ब्राह्मण सा आचरण करेगा।"
इस पर सत्यवती ने भृगु ऋषि से बड़ी विनती की।


सत्यवती ने कहा,"मुझे आशीर्वाद दें कि मेरा पुत्र ब्राह्मण सा ही आचरण करे।"तब महर्षि ने उसे ये आशीर्वाद दे दिया कि उसका पुत्र ब्राह्मण सा ही आचरण करेगा किन्तु उसका पौत्र क्षत्रियों सा व्यवहार करेगा। सत्यवती का एक पुत्र हुआ जिसका नाम जम्दाग्नि था जो सप्त ऋषियों में से एक हैं।