James Simons Steps Down as Chairman of Renaissance Technologies
The investing pioneer is stepping back from his role as chairman at highly successful quant hedge fund
Investing pioneer James Simons is stepping back from his quant hedge fund, Renaissance Technologies LLC.
Several weeks ago, Mr. Simons—a former math professor and codebreaker who built Renaissance into one of the most successful investment firms in history—told clients he was stepping down as chairman of the firm’s board of directors as of Jan. 1. Mr. Simons, who will turn 83 in April, resigned as Renaissance’s chief executive in 2010, but continued to lead the board.
In a letter to clients, Mr. Simons, who will remain a board member, said, “I believe it is time: this transition has been many years in the making.”
Peter Brown, the firm’s chief executive, has taken over as chairman of the board.
At the age of 40, Mr. Simons quit academia to try his hand at trading. He started Renaissance in a storefront office in a dreary Long Island strip mall in the summer of 1978. For a while, Mr. Simons traded like most everyone else, relying on old-fashioned research. He made more money than he lost but couldn’t handle the ups and downs of that approach.
Over time, Mr. Simons recruited renowned mathematicians and computer programmers while shifting to a more quantitative strategy. He relied on mathematical models and high-powered computers rather than intuition and instinct, becoming one of the first to fully embrace a method of investing that has since swept Wall Street.
Today, Mr. Simons is considered the most successful money maker in the history of modern finance. Since 1988, his flagship Medallion hedge fund generated average annual returns of 66% before charging hefty investor fees through 2018. After fees, the fund had an annual return of 39%.
The fund has also beaten the market over the past two years. Over the history of the fund, it has racked up trading gains of more than $110 billion. Mr. Simons’s performance is better than investing luminaries including Warren Buffett, George Soros, Peter Lynch, Steve Cohen, and Ray Dalio.