Why does Renaissance continues to (hugely) outperform?

[fareastwarriors]

Renaissance’s Medallion Made a Stunning Shift After Trump’s Election

 

https://www.bloomberg.com/news/articles/2017-08-16/renaissance-s-medallion-made-stunning-shift-after-trump-election

[DooDiligence]

Renaissance’s Medallion Made a Stunning Shift After Trump’s Election

 

https://www.bloomberg.com/news/articles/2017-08-16/renaissance-s-medallion-made-stunning-shift-after-trump-election

 

Karma

[Guest Cameron]

One of their strategies that they used to use but because others started doing it and returns were not the same they released it.

 

They found a correlation between an exchange and the whether in which the exchange was located, when the whether was good then they found that more often than not the exchange would open in the green and when the whether was bad in the city that an exchange was located it opened in the red. I'll post the article or case study when I find it.

 

Found it:

When the IBM crew arrived at Renaissance, Medallion was already producing annual returns, after fees, of at least 30 percent almost exclusively from futures trading. In the early days, anomalies were easy to spot and exploit. A Renaissance scientist noted that Standard & Poor’s options and futures closing times were 15 minutes apart, a detail he turned into a profit engine for a time, one former investor says. The system was full of such aberrations, he says, and the scientists researched each of them to death. Adding them all up produced serious money—millions at first, and before long,

 

At the 2013 conference, Brown referenced an example they once shared with outside Medallion investors: By studying cloud cover data, they found a correlation between sunny days and rising markets from New York to Tokyo. “It turns out that when it’s cloudy in Paris, the French market is less likely to go up than when it’s sunny in Paris,” he said. It wasn’t a big moneymaker, though, because it was true only slightly more than 50 percent of the time. Brown continued: “The point is that, if there were signals that made a lot of sense that were very strong, they would have long ago been traded out. ... What we do is look for lots and lots, and we have, I don’t know, like 90 Ph.D.s in math and physics, who just sit there looking for these signals all day long. We have 10,000 processors in there that are constantly grinding away looking for signals.”

 

https://www.bloomberg.com/news/articles/2016-11-21/how-renaissance-s-medallion-fund-became-finance-s-blackest-box