The Story of James Simons - Renaissance Technologies & Medallion Fund

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  • Опубликовано: 4 фев 2025

Комментарии • 299

  • @PBoyle
    @PBoyle  4 года назад +54

    Thanks to our growing list of Patreon Sponsors and Channel Members for supporting the channel. www.patreon.com/PatrickBoyleOnFinance Marc De Mesel, Annie Chen, Nate Stapleton,Timothy Baird,Cab1260, WIlam, Robertas, Hernan Merino, Random Encounter, Nieuwsbrief Ikwil, Bee Positive Consulting, hyunjung Kim, John Cadena, Ian Tracey, A Smith, Callum McLean, Oscar, Simon Pena, Alexander E F, Cyrus Yari, Ed, Pavle Obradovic, Erik Van Ekelenburg, David O'Connor, Zak Patterson, Ki Ryu Chan, Pjotr Bekkering, Drew, Ivaylo Kunev, Alex, Robert W Proudfoot, EatEmAll, Michael Boensel, pooh shmoo, Robert Muller, Andre Michel, Ivan Iliev, Gopaljee Atulya, Milan Tomic, Mark Hooker, Artem Vasenin, P H, Mathews Sebonego, Sebastian, Michal Lacko, Yann M, VicMR, Peter Bočan, Michael Pierce, V Jordan, Steve Kinnear, Gil, HalfwitHam, Mark Brophy, Patrick T, David Urdenata, Juan Valdez, Bruce Roberts, Chad Norman, Bruce Roberts, Shamikh Rana, Friday Guy, Marc De Mesel, Augusto Ramos, Soy Boomer Doomer, Bob Slartabartfast, Robert Feiler, Camil Dbouk, Erik Montesinos, Matthew Loos, Az Indragiri, Aman Bali, Lautaro Parada, Pratap, Deborah Joseph, Robin Sung, Kurt Johnston, Dominik Auerbach, gurmeet Kaushal, John Hall, Dara Mo and Josef Goergen,

    • @gurjotsingh5131
      @gurjotsingh5131 4 года назад +2

      Is there a reason as to why the Medallion fund doesn't increase its capital investment which is capped at 10 billion because they can achieve these monstrous returns at billions of dollars I'm sure there is enough liquidity in the market to where they could increase it to maybe even 30 billion or possibly more

    • @IronMan-ch7de
      @IronMan-ch7de 4 года назад +1

      Befor I watch the video, I have to say there are no secret Trading strategys. Everybody is trading on public information!
      I think it was clever marketing getting him rich.

    • @SomeOne-wc9pr
      @SomeOne-wc9pr 4 года назад +1

      Hello Patrick, I hope I am not annoying you too much, but could you explain to me or in a video how $GME could be shorted >120% if naked shortselling is illegal?

    • @01boga
      @01boga 4 года назад

      @@SomeOne-wc9pr This

    • @notsogood4321
      @notsogood4321 4 года назад

      Have you considered a vid on the reddit wallstreet bets thing

  • @helenachase78
    @helenachase78 4 года назад +251

    Patrick , you do biographies very, very well.

  • @7orqu3
    @7orqu3 4 года назад +33

    Came here because of Brady at Numberphile. He did an hour long interview with him. Absolutely incredible.

  • @denisdoci23
    @denisdoci23 4 года назад +211

    It’s so hard to find a genuinely great financial channel on platform filled with swindlers and charlatans. You deserve way more subscribers. Can anyone recommend similar channels to Patrick’s ?

    • @mushrifsaidin
      @mushrifsaidin 4 года назад +42

      The Plain Bagel is a good channel similar to Patrick's

    • @Andres186000
      @Andres186000 4 года назад +3

      There's an nyu finance professor who also makes videos here on RUclips

    • @alex_6527
      @alex_6527 4 года назад +28

      Professor Aswath Damodaran

    • @denisdoci23
      @denisdoci23 4 года назад +1

      @@alex_6527 Thanks!

    • @Andres186000
      @Andres186000 4 года назад +6

      @@niobull2206 get reported

  • @linnovate360
    @linnovate360 4 года назад +30

    Patrick, you truly are an excellent educator. From the tone of your voice, to the rhythm of concise facts.
    I am continually learning, and lucky to have come across your channel.
    Thanks, for what you do.

  • @stevinacanstevinacan9618
    @stevinacanstevinacan9618 4 года назад +46

    This was interesting but I'd recommend instead of talking about "gains" I'd use the more technical term "tendies" and instead of "stocks" use "stonks" this will allow a broader audience to understand the material.

  • @saitaro
    @saitaro 3 года назад +3

    I am happy to find this channel. Sir, do not stop.

  • @jordiecomm4423
    @jordiecomm4423 3 года назад +5

    Wow, this guy explained himself very clearly that I didn't even have to pause the video, congrats and very interesting !!!

  • @TypicalKid100
    @TypicalKid100 4 года назад +22

    This was fantastic. A very enigmatic group, quietly moving markets out in the boonies of Long Island. Always been curious about this group, crazy this group had so much inner turmoil vs. the impression of a bunch of PhD math nerds quanting out and playing chess.

    • @KenjaTimu
      @KenjaTimu 2 года назад

      Whenever I hear that someone is beating the market I assume it's a ponzi scheme.

  • @JayBigDadyCy
    @JayBigDadyCy Год назад +6

    What's kind of wild is that a team of mathematicians failed for years, yet I know a few people who barely graduated highschool that were brilliant traders right off the bat. Markets are strange like that. This was a great video and I'm glad you covered the fact that it wasn't peaches and cream all the time for these guys. They struggled and failed for a long time. They fought amongst each other as well.

    • @Telencephelon
      @Telencephelon Год назад

      You are also a brilliant trader. And to celebrate your success you are here now with us on youtube and commenting.
      For everyone else I hope you can differentiate yourself, a meantball with 200+ cognitive biases, and a sentient super-intelligence like a corporation with checks and balancess

    • @David-ud9ju
      @David-ud9ju 2 месяца назад

      Yeah, I doubt that.

  • @patrickchase5614
    @patrickchase5614 8 месяцев назад +1

    OMG that clip of Bowie on Bing Crosby's Christmas special cracks me up every time, especially since you timed it to play when you said "moving with the times". Perfect.

  • @JaseBrand
    @JaseBrand 4 года назад +3

    Thanks Patrick you’re the best RUclips channel by far in this industry

  • @barkingshark6413
    @barkingshark6413 4 года назад +10

    Thanks Patrick, always look forward to another video from you.

  • @BornagainKev
    @BornagainKev Год назад

    Pat, your dry sense of humor and great financial information is truly S-teir! Your channel is a real 💎.

  • @insighthoops3484
    @insighthoops3484 4 года назад +5

    Love the book "Thinking Fast and Slow" that's next to you! Fantastic read.

  • @boldbaatardashdorj9389
    @boldbaatardashdorj9389 10 месяцев назад

    Thanks!

  • @saveenergy8702
    @saveenergy8702 4 года назад +1

    Came here after my brother suggested. Grateful 🙏

  • @blakebrothers
    @blakebrothers 3 года назад +9

    Fascinating! Just ordered the book and thanks for the history lesson!

  • @caiusKeys
    @caiusKeys 4 года назад +34

    All the so-called financial "experts" portray themselves as James Simons, but only 0.01% have the smarts of James, and even fewer have the success.

    • @paullangton-rogers2390
      @paullangton-rogers2390 Год назад

      Indeed. People need to be extremely wary of so-called financial experts and gurus. Most are outright fraudsters. If an investment fund or investment advisor says they can achieve consistent high annual returns, they're lying. Nobody can promise that. Even Warrent Buffet and the real professions with 50+ years actice and successful fund management wouldn't make such claims and have had bad years in the past where their fund and clients lost money.

  • @MRKINGCOLLINS
    @MRKINGCOLLINS 3 года назад +2

    You are a legend Mr Boyle! Keep up the good work!

  • @GreenSmoke352
    @GreenSmoke352 4 года назад +7

    This is a great man and as always a great video. Thank you for the knowledge!

  • @林欣毅-t8n
    @林欣毅-t8n 4 года назад +8

    Thank you for another informative video on the world of finance.

  • @chrish.942
    @chrish.942 4 года назад +32

    "Skipping the firs year of mathematics..."
    Okay
    "...at MIT"
    :-O

    • @entropica
      @entropica 4 года назад +6

      Well, he isn't just the run-of-the-mill mathematician that applies some maths to non-math problems. He did REAL, PURE mathematics on a world class level. The so-called Chern-Simons 3-form was later even recognized to be applicable to string theory by Edward Witten, and he called it Chern-Simons theory accordingly. All this is something COMPLETELY different from the applied math that is used at Renaissance, and on a much more sophisticated intellectual level.

  • @ytlover7924
    @ytlover7924 4 года назад +9

    1.45 "You can teach someone how to do a job but, you cant teach them, to be smart" true

  • @martonvirraszto4774
    @martonvirraszto4774 4 года назад +9

    Patrick, another fantastic video! Really enjoyed it.
    Some day, you could do a video on the historic short squeeze that happened on GME in the recent days. Institutions vs retail battle. Would love to hear your take on this squeeze and possibly similar ones that are memorable from history. Thank you!

    • @PBoyle
      @PBoyle  4 года назад +4

      Just put a video up yesterday on that.

    • @martonvirraszto4774
      @martonvirraszto4774 4 года назад

      @@PBoyle And I have already seen that in the morning ;) Thank you! Really enjoying the show!

  • @peachjwp
    @peachjwp 3 года назад +6

    Virtually no one beats the market consistently. And if they can, their information will be more expensive than you could afford to pay.

  • @tinolino58
    @tinolino58 4 года назад +3

    I see the briliance in Patricks brain.. no ähhh uhhh and things like that while he explains a complex subject.
    Great series of videos!

  • @J0risNL
    @J0risNL 4 года назад +4

    "but they did" followed by that cheeky smile, cracks me up every time 18:37

  • @keirdoubas
    @keirdoubas Год назад +1

    Brilliant synopsis, i've alwayed wanted to know a bit more about James Simons and Renaissance technologies. Thank you Patrick.

  • @DannRecio
    @DannRecio 4 года назад +5

    I love his work and insight

  • @susymay7831
    @susymay7831 2 года назад +4

    Medallion is now capped at ten billion with only employee and founder money allowed.
    Medallion has the legendary and smaller secret sauce trades but...
    Renaissance Technologies has other funds (making larger trades) that are open to outsiders but they do not, after fees, beat reasonable benchmarks and one even folded.

  • @kylejf9059
    @kylejf9059 4 года назад +2

    Flashback humour - "Dentist's".
    Jack Schwager would be an excellent interview for Simmons. His story sounds like so many others, yet on a much longer timescale of overcoming adversity in trading and learning from mistakes. Seems like an almost commonality at times, most of these guys get put onto their knees at times before becoming extremely competent traders.
    Look forward to next week's video.

  • @netrabhatta
    @netrabhatta 4 года назад +3

    Thank you Patrick for the great content.

  • @davianoinglesias5030
    @davianoinglesias5030 2 года назад +3

    Fantastic biography, I love this page for 3 things things 1. Facts 2. Dry humour 3. clarity .I'm currently working on a Cognitive Psychology algorithm/formula that I intend to use in Speculating the markets. I hope it works one day and probably my biography will be as famous ,,a book titled 'The Man who solved Behavioral Trading' would be a great title😂😂

  • @davidmadle5007
    @davidmadle5007 4 года назад +3

    As always great value many thanks for this

  • @Dat_Dude_Danny1
    @Dat_Dude_Danny1 4 года назад +3

    Excellent video, mate! Thanks for posting.

  • @titanstrading
    @titanstrading 2 года назад +1

    This is the best bio of him that I've seen, thank you!!!

  • @clyderichardson6475
    @clyderichardson6475 4 года назад +10

    Great production of interesting material as usual Patrick. When I complete “The Smartest Guys in the Room” I will get the book you recommended. I also enjoyed “When Genius Failed was also a great book.

  • @MrEo89
    @MrEo89 4 года назад +52

    I highly recommend the book on Mr. Simons, “The Man Who Solved the Markets.” By Greg Zuckerman.

    • @MrEo89
      @MrEo89 4 года назад +24

      And, of course, you present the book at the end of the video... 🤦🏻‍♂️should’ve waited 😅

    • @klam77
      @klam77 4 года назад +1

      does it explain Simon's use of hidden markov model or such?

    • @shaunwee1773
      @shaunwee1773 4 года назад +5

      @@klam77 nope. Its more of a biography, but drops phrases like higher dimensional kernel regression.
      Rather a good read but dont expect to any secrets of simons

    • @klam77
      @klam77 4 года назад +1

      @@shaunwee1773 thanks!

    • @bachpham6862
      @bachpham6862 4 года назад

      @@klam77 His model is trade secrets, but the book does drop hints on how he did it.

  • @bojanbatalovic7186
    @bojanbatalovic7186 3 года назад +2

    Academically delivered as always. Thank you!

  • @annajones9701
    @annajones9701 4 года назад +70

    How he chose to buy a stock - simple - flicked a coin and head buys. In seriousness that is why many quant hedge funds prefer taking on a maths/physics PhD with no experience. They can train the finance element easy but is hard for a finance PhD to understand some complex maths needed.

    • @dariusashouri2439
      @dariusashouri2439 4 года назад +3

      you dont need PHD and this amount of complexity to make money in stock market. read about John C. Bogle
      and finish the headache

    • @annajones9701
      @annajones9701 4 года назад +9

      @@dariusashouri2439 that is for average Joe investing. Not a professional trader at a firm

    • @dariusashouri2439
      @dariusashouri2439 4 года назад +2

      Im not going argue with you about PHD , but you mean professional gambler at a firm that gamble with people’s money yes? Just correct your sentence. Regard to phd listen to warren buffet and charlie munger. I have no idea whats Joe investing. Im out of time GL

    • @superdingo9741
      @superdingo9741 3 года назад +3

      @@annajones9701 The "professional trader" buys from or sells to another "professional trader". So in average earnings of all the "professional traders" are the same as of the whole market (minus fees). You don't need to have PhD in math to understand that.

    • @annajones9701
      @annajones9701 3 года назад +3

      @@superdingo9741 professional traders screw the retail guys over. Institutional, quants, retail guys. ..

  • @ereztison
    @ereztison 3 года назад +2

    Many thanks Patrick, love this kind of videos.

  • @wisdomhunter3797
    @wisdomhunter3797 12 часов назад

    Great vid! Thanks for putting that one together for us

  • @paullangton-rogers2390
    @paullangton-rogers2390 Год назад

    Thank you for continuing to provide first class content Patrick, and sharing your brilliant teachings and personal insights. As a newcomer to the world of investing I've learned and am learning so much to explore my own ideas.

  • @perschonca
    @perschonca 4 года назад +3

    Love these kinds of videos. Thanks!

  • @swastiknayak4978
    @swastiknayak4978 4 года назад +2

    please keep making these videos we love it 👍

  • @ДанилаБабич-е2р
    @ДанилаБабич-е2р 4 года назад +3

    This is the best if not the only one good promo of the Zukerman book.The author himself made bitter impression in WSJ article and his TV interviews of clueless media buzz

  • @pduran880
    @pduran880 2 года назад +2

    Great story and you did a great job telling it

  • @epictetus-nicopolis
    @epictetus-nicopolis 3 года назад +1

    Wonderful presentation. Thank you!

  • @trevorisle5462
    @trevorisle5462 4 года назад +5

    Great video! Tons of info and interesting too! 👍

  • @erikvanekelenburg9309
    @erikvanekelenburg9309 3 года назад +2

    Great job as always Patrick

  • @Salah-qu4cs
    @Salah-qu4cs 4 года назад +13

    Profiting off cocky dentists' money. I love this fund even more now haha

  • @CristianHernandez-312
    @CristianHernandez-312 4 года назад +5

    Great Story, thanks for sharing.

  • @coscorrodrift
    @coscorrodrift Год назад

    Fantastic video, super clear explanation and especially, a story well told in a way that isn't exaggerated or clickbaity

  • @mikestanmore2614
    @mikestanmore2614 4 года назад +2

    Oh, now there's a black box I'd like to get a look at! (I know, I know, I'm not Robinson Crusoe!)
    Thanks again for another interesting bio, Patrick.

  • @SJ-vc2tz
    @SJ-vc2tz 3 года назад +3

    Very nice story, if I may I'd recommend a bit more visual storytelling since it's a video. For example a picture of the 'Murphy bed' (is that correct?) was really good. Good luck with the channel!

  • @TheRealLazyBear
    @TheRealLazyBear 4 года назад

    will wait next Saturday for the next video, this is brilliant.

  • @ExplainedExplanation
    @ExplainedExplanation 3 года назад +3

    Cheers Patrick fantastic video

  • @youtubestolemyusername3419
    @youtubestolemyusername3419 4 года назад +1

    I want to be a member of your channel. I love the content. I learn way more from you than from people that just suggest this and that and say how great it is. I want to support it but then I have to give youtube all my personal info and I don't want that.

  • @thomasfung3205
    @thomasfung3205 4 года назад +5

    Excellent video!!!

  • @andreas3578
    @andreas3578 4 года назад +3

    as always, thanks for the good content.

  • @marcus-johannesvermin5202
    @marcus-johannesvermin5202 3 года назад +2

    Subscribed. Great content, great video Patrick .... Thanks mate!!!

  • @sametcankaya3706
    @sametcankaya3706 4 года назад +2

    Great video again . Loves from Turkey

  • @jamesy3851
    @jamesy3851 4 года назад +3

    Funny timing! I just started reading "The Man Who Solved The Market" last night. Love your videos!

  • @vernefits1953
    @vernefits1953 3 года назад +1

    Excellent video. Well rounded

  • @mbugard
    @mbugard 3 года назад +1

    Love the Bowie analogy.

  • @zammy92
    @zammy92 4 года назад +6

    Lots of questions about whether these returns are genuine given his public fund has been underperforming significantly cf. to his medallion fund.
    Although, I would not necessarily agree with this view

  • @jeffw8218
    @jeffw8218 2 года назад +2

    Be born a genius in mathematics.
    Got it.

  • @dennismorris7573
    @dennismorris7573 4 года назад +3

    Fascinating.

  • @rodolfoblasser3329
    @rodolfoblasser3329 4 года назад +1

    Thanks Patrick!

  • @surething119
    @surething119 2 года назад +1

    you are an inspiring man

  • @JP-xv8uq
    @JP-xv8uq 2 года назад +1

    Love the history recap, but one concept you kinda went over or skimped on was the methods for collecting. You mention how hard it was to collect data during those times which is why it was popular to trade off the news rather than trade quantitavely.

  • @jeronimosuarez7957
    @jeronimosuarez7957 7 месяцев назад

    Great one!

  • @patrickt873
    @patrickt873 2 года назад +1

    Good video. Well done

  • @800acceptnoimitation
    @800acceptnoimitation 4 года назад +2

    Interesting video. I wasn't familiar with this fund.

  • @desislavpetrov3780
    @desislavpetrov3780 4 года назад +3

    Hi Patrick, great video(s)! Enjoyed it, and appreciated it as usual.
    I have a question. What are your predictions for MBIA after the news came out , Credit Swisse have to pay them 690M(I believe Monday), on the court decision that came out 20.01.2021. Any SP in mind? I am in, obviously, however I never came across such s scenario for a company as this one, and am a bit lost as to what is to be expected SP wise.
    Thank you in advance!

  • @henrytep8884
    @henrytep8884 4 года назад +3

    YOU GOTTA DO GAMESTOP PLEASE!!

  • @DerperDaDerpa
    @DerperDaDerpa 4 года назад +4

    Simons is the David Bowie of finance!🤣👍🍻

  • @blakejech6846
    @blakejech6846 4 года назад +4

    Before listening to this, my guess is his medallion fund front runs his other funds, helping drive his premier fund through the roof.

  • @borneotrades
    @borneotrades 4 года назад +1

    excellent video

  • @rebusd
    @rebusd 2 года назад +1

    needed this to detox after all that FTX hype and implosion

  • @conorq377
    @conorq377 4 года назад +2

    video setup is nice, maybe raise the camera

  • @01boga
    @01boga 4 года назад +2

    Make a video about gamestop shortselling cause this is gonna be legendary dude

    • @PBoyle
      @PBoyle  4 года назад +2

      It is uploading right now.

  • @AI7KTD
    @AI7KTD 3 года назад +3

    What you're describing on his hiring practices and the collaborative environment is very similar to Google's hiring and culture.

  • @ss032010310103
    @ss032010310103 4 года назад +1

    Thank you!

  • @Ahmed_el_Ankaoui
    @Ahmed_el_Ankaoui 4 года назад +2

    Who the heck gives this a thumbs down?!?

  • @Jayslollipop
    @Jayslollipop 4 года назад +5

    Robert Mercer made his Medallion Fund work.

  • @jonc67uk
    @jonc67uk 3 года назад +2

    Good bio. How about doing Robert Mercer? That would be interesting.

  • @sofjanmustopoh7232
    @sofjanmustopoh7232 3 года назад

    That’s an awesome presentation

  • @shephusted2714
    @shephusted2714 2 года назад

    his efforts are so far past competitors the results are unique - he did something different #models

  • @ag5605
    @ag5605 Год назад

    I really appreciate Patrick

  • @stellagold19
    @stellagold19 5 месяцев назад

    Thank You Boss

  • @kartikkhanna1503
    @kartikkhanna1503 4 года назад +2

    hello sir,
    can you please suggest some good books and courses on time series analysis, how to develop a framework and build good models.

    • @koltoncrane3099
      @koltoncrane3099 2 года назад

      Look up Benjamin graham. He has a value investing book and I think one on models maybe

  • @grumbla1
    @grumbla1 4 года назад +4

    Great Video Patrick. Could you make a video about Robert Mercer? I heard he became the Kingmaker of Donald Trump. What is your opinion on the tangles between politics and hedge funds? Or artificial intelligence / machine learning?

  • @pauleohl
    @pauleohl 3 года назад +1

    Can anyone explain how you can take advantage of market inefficiencies when you are only holding a position for one day?

  • @morris4430
    @morris4430 4 года назад +3

    My trading strategies are built with his foundational principles. My account is always linear overtime and I like to think it's because of his teachings. He is one of, if not, the greatest trader to have ever lived.

    • @binaydhakal6179
      @binaydhakal6179 4 года назад +1

      Account being Linear meaning?

    • @morris4430
      @morris4430 4 года назад +1

      @@binaydhakal6179 Always profitable overtime

  • @SnappCheck
    @SnappCheck 4 года назад +4

    Hey Patrick, could you make a video explaining whats exactly going on the GME stock right now? The relation between the retail investors and institutional one? And maybe how it will affect the future of investing?

  • @rationalinvestor5513
    @rationalinvestor5513 3 года назад +3

    Patrick, First of all I would like to say a big thank you for providing so useful Information. I have a question regarding this video. James Simons managed to beat the market for an extended period of time using statistical concepts and quantitative analysis. Do you think that this can be achieved again given the current market conditions? In other words, investing in the stock market has been a trend after the 2008 F.C. As a result, the number of retail investors has increased exponentially. Having that said, is it still possible to predict future results based on past events working with such a massive data set? If that's the case, do you think that this might go against the efficient market theory? Thanks again, GM

    • @RozPanthiras
      @RozPanthiras 3 года назад

      ΠΑΜΕ ΛΙΓΟ ΡΕ ΡΑΣΙΟΝΑΛ ΑΛΑΝΙ 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀

    • @RozPanthiras
      @RozPanthiras 3 года назад

      ΚΑΛΑ ΤΑ ΛΕΣ

  • @Longtack55
    @Longtack55 4 года назад +2

    Thanks Patrick. I'm pleased that they were clever enough to be using some of the methods I use :-) (such as splitting up into parcels/tranches so as not to disturb the market unfavourably.)

  • @hankigoe8615
    @hankigoe8615 Год назад

    how does one determine their own cognitive biases? Is such a thing possible, even in theory? If one can't, is it possible to mitigate those biases?