Thanks for reading Ryan, these are good points although I will add not all quant funds are the same, AQR for example is an alternative beta investors that predominately harvests risk premia, it would be difficult for AQR to generate a return of the same magnitude without significant amounts of leverage even when they do perform well.

Leverage and risk tolerances are also the other pieces of the puzzle, AQR and Two Sigma run client money and as such they will be subject to the risk constraints of the client while Medallion runs only employee money, I believe they do not disclose the how much leverage is in the fund nor do they have an obligation to do so. 20% return generated at 200% leverage is not the same as 20% generated at no leverage.

On the other funds it’s true that they’re not as successful but they’re also managed differently, RenTech’s true skill lies in how they manage Medallion.

Researcher | Investor | Data Scientist | Curious Observer. Thoughts and insights from the confluence of investing and machine learning.

Researcher | Investor | Data Scientist | Curious Observer. Thoughts and insights from the confluence of investing and machine learning.