Not an official book club book, but various members of the HIG team are listening to the audiobook of The Man Who Solved the Market, by Gregory Zuckerman. We’re not hedge fund fans due to costs, complexity, lock-up periods, and so on, but Renaissance Technologies has a peculiar story that has piqued the interest of many in our industry.
We’re unsure as to whether we recommend the book, but this we know: Jim Simons and Renaissance have had spectacular success and we feel compelled to better understand their story. In the end, we agree with the author, who in one of his final reflections states “For all the unique data, computer firepower, special talent, and trading and risk-management expertise Renaissance has gathered, the firm only profits on barely more than 50 percent of its trades, a sign of how challenging it is to try to beat the market — and how foolish it is for most investors to try.” Put differently, take the long view®.
