Pioneer Jim Simons, a mathematician who founded the most successful quantitative hedge fund ever, passed away in New York City on Friday, according to his foundation’s website.
Renowned for pioneering mathematical models and algorithms for investment decisions, pioneer Jim Simons achieved a track record at Renaissance Technologies comparable to legends like Warren Buffett and George Soros. His flagship Medallion Fund yielded 66% annual returns from 1988 to 2018, as detailed in Gregory Zuckerman’s book “The Man Who Solved the Market.”
During the Vietnam War, he served as a codebreaker for U.S. intelligence, deciphering Russian codes while monitoring the Soviet Union.
Pioneer Jim Simonsearned a bachelor’s degree in mathematics from MIT in 1958 and completed his Ph.D in mathematics at UC Berkeley by age 23. Founding what evolved into Renaissance in 1978 at age 40, he transitioned from academia to pursue trading.
Contrary to conventional investors who analyze fundamentals like sales and earnings, pioneer Jim Simonsrelied solely on an automated trading system exploiting market inefficiencies and trading patterns.
“I have no opinion on any stocks. … The computer has its opinions and we slavishly follow them,” pioneer Jim Simonsstated in a 2016 interview.
His Medallion Fund amassed over $100 billion in trading profits from 1988 to 2018, boasting a 39% annualized return post fees. Closed to new investors since 1993, Simons permitted employee investment only from 2005.
Quantitative strategies utilizing trend-following models gained traction on Wall Street following Simons’ trading revolution in the 1980s, now representing over 20% of equity assets per JPMorgan estimates.
pioneer Jim Simons net worth at the time of his passing was approximately $31.4 billion, according to Forbes.
Formerly chairing the math department at Stony Brook University, his mathematical innovations profoundly impacted fields like string theory, topology, and condensed matter physics, as noted by his foundation.
Establishing the Simons Foundation in 1994 with his wife, they donated billions to philanthropic causes, particularly in support of math and science research.
Remaining active in foundation work until his passing, Simons is survived by his wife, three children, five grandchildren, and a great-grandchild.
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