Home Hedge Funds Legendary hedge fund manager lived by these tenets

Legendary hedge fund manager lived by these tenets

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Jim Simons, a mathematician who evolved into one of the most successful investors in modern financial history, died at age 86. A pioneering code breaker and geometer, Simons spearheaded a trading revolution, adopting a computer-oriented, quantitative approach in the 1980s well ahead of the Wall Street crowd.

He and his team utilised trading algorithms and artificial intelligence to consistently outperform the market, surpassing even the achievements of Warren Buffett and George Soros.

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Under Simons’ leadership, Renaissance, whose Medallion Fund delivered average annual returns of more than 60 percent over three decades, emerged as one of the world’s most successful hedge funds. He retired as chief executive officer in 2010 and stepped down as chairman in 2021. With a net worth estimated at $31 billion by Forbes, Simons later became a notable political donor and influential philanthropist in the realms of science, health, and education, donating billions of dollars to support medical and scientific research, education, and Democratic candidates.

Also read: How Jim Simons pioneered quant investing to be best investor of all time

As a mathematician, Simons was accustomed to handling large datasets and adept at discerning patterns to inform trading decisions. In 1994, Simons and his wife, Marilyn, established the Simons Foundation, which aids scientists and organizations worldwide in advancing research frontiers in mathematics and the basic sciences.

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Also read: Quant hedge fund pioneer Jim Simons dies at 86; tributes pour in from Ray Dalio, Mike Bloomberg, more

“I did a lot of math. I made a lot of money, and I gave almost all of it away,” Simons remarked at a 2022 event honouring Abel Prize winners recognised for their mathematical achievements. “That’s the story of my life.”

Here are five principles Jim Simons lived by:

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Be guided by beauty. Just as a great theorem can be very beautiful, a company that’s really working very well, very efficiently, that can be beautiful.

Surround yourself with the smartest and best people you possibly can. Let them do their thing. Don’t sit on top of them. If they’re smarter than you, all the better.

Do something original. Don’t run with the pack. If everyone is trying to solve the same problem… don’t do that.

Don’t give up easily. Stick with it. Stick with it not forever, but really give it a chance to get where you’re going.

The final principle is hope for good luck. “That’s the most important principle”

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

 


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