At one point in time, Renaissance Technologies charged the highest charged the highest hedge fund fees in the world. And for investors, it was probably worth it.
Whereas most hedge funds have a 2-20 fee scheme (2% for management and 20% for performance), Renaissance was doing 5-44, meaning a 5% flat fee and 44% of the upside. It was also averaging a staggering 71.8% annual return, before fees, from 1994 to 2014, according to Bloomberg.
[dalio]
“We made good returns, yes,” said Renaissance founder Jim Simons in a recent TED talk. People got very mad: ‘How can you charge such high fees?’ I said, ‘OK, you can withdraw.’ But ‘How can I get more?’ was what people were [asking].”
Renaissance has...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
