leftskew
|
|
| Total Posts: 22 |
| Joined: Sep 2019 |
| |
|
There was a pretty large crash in quant equity style factors the first week of June coincident with their drop. These factors bounced most of the way back the second week in June, so I figured rentec funds would also bounce. However this was wrong, they were basically flat the second week of June. So either they are exposed to a factor that didn't bounce like the rest, or maybe they took off exposure at the bottom. Either way looks rough for them.
I don't have any info on medallion but I have no reason to assume it did anything unusual during this period.
Given they still have their 10B money printing machine, rentec should be fine. |
|
|
|
 |
|
One thing to consider is that RIDA may simply be less risk-adverse to these types of selloffs than the average equity market neutral fund.
Medallion, by trading at much shorter horizons, probably over-performs during periods of market turmoil. RIDA and Medallion would act like natural hedges against each other. In the same way that bonds hedge stocks in a 60/40 portfolio. That probably encourages the insiders to over-leverage RIDA, at least relative to what's optimal from the perspective of a standalone investor. |
Good questions outrank easy answers.
-Paul Samuelson |
|
 |
| |
|
gamerx
|
|
| Total Posts: 19 |
| Joined: Sep 2012 |
| |
|
https://www.bloomberg.com/news/articles/2020-08-05/renaissance-hedge-funds-see-red-in-2020-while-market-turns-green
Institutional Equities Fund down 13.4% in first seven months
Firm’s two market-neutral funds also down by double digits
Wow! How did their market neutral funds do so bad? |
|
|
|
leftskew
|
|
| Total Posts: 22 |
| Joined: Sep 2019 |
| |
|
They have some fairly well known factor exposure, and those factors crashed pretty hard in late Feb and March. FWIW they are down further in Aug, as of Aug 14 all YTD: RIEF -15.95%, RIDGE -21.13%, RIDA -22.2%.
Medallion, on the other hand, will probably have a record year in 2020. |
|
|
|
|
