R.I.P.: How Did the Quant Investing King Achieve 66% Return and Unfold His Magical Life?

You tell people that someone made 66% annual returns for 30 years and most people would doubt it unless they know Simons’ story.

Jim Simons' Legacy Spans Hedge Fund, Math, Philanthropy

Reviewing Simons' life,

in early years, he dominated the mathematics world, achieving remarkable success.

In middle age, he entered the finance industry and conquered Wall Street.

In his later years, he devoted himself to charity and contributed to society.

The brilliant mathematician got his Ph.D. at the age of 23 and established the renowned Chern-Simons theory at 36, earning him the highest awards in geometry.

Mathematician Conquered Wall Street: 66% Returns For 30 Years

Renaissance's main Medallion Fund made a whopping 62% every year (before fees) and 37% (after fees) from 1988 to 2021.

That means, putting $1 in the Medallion Fund back in 1988 – by 2021, it would have grown to almost $42,000 after fees.

But sadly, retail investors can’t invest in this fund. The fund has been closed to outside investors since 1993 and is available only to current and past employees and their families.

Most of Simons' company's employees are top scientists in fields such as mathematics, physics, and statistics. The company never hires business school graduates or Wall Street professionals, which is unparalleled among investment firms in the United States.

His secret to success is applying mathematical theories to stock investment:

1. designing quantitative investment management models for different markets;

2. relying on computer calculations to eliminate human interference;

3. engaging in short-term trading on various markets worldwide.

From Investing to Charity: Foundation's Donations Exceeds $1 Billion

On January 1, 2021, Simons announced his retirement and resigned as chairman of the Renaissance Technologies board. He then focused on charitable activities in science, education, and other areas.

Simons established a foundation that provides $15,000 grants annually to 1,000 New York City public school math and science teachers.

Additionally, he has invested heavily in supporting research and development of drugs for autism.

If you want to learn more about Jim Simons, you can read the biography The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution.