Renaissance Technologies is mulling the launch of a new fund and is discussing it with its investors.
According to sources, the East Setauket, New York, quantitative firm is seriously considering whether to create an equity market-neutral fund. The firm has not officially decided to move forward with the launch, but if it does, it will take place in the first quarter.
Renaissance is considering this new fund after receiving interest from investors about the product, according to people familiar with the firm. The discussions and possible planning of the new fund are occurring as Renaissance is planning to wind down its Renaissance Institutional Futures Fund, which is set to happen at the end of this month.
Meanwhile, Renaissance’s other two funds are enjoying a great year. Through October 23, the Renaissance Institutional Equities Fund is up about 17 percent. RIEF employs a net-long investment strategy and uses computer programs to trade U.S. and non-U.S. equity securities listed on U.S. exchanges.
The Renaissance Institutional Diversified Alpha Fund, which trades global futures and forwards and U.S. and non-U.S. equities listed on U.S. exchanges, is up 13 percent so far this year, which is shaping up to be the best in its history. RIDA is the newest Renaissance fund, having been launched on March 1, 2012.
Renaissance was founded by James Simons, who remains nonexecutive chairman. The math whiz served as a U.S. National Security Agency code breaker during the cold war and later as chairman of Stony Brook University’s mathematics department.
Simons is the only individual to appear on Alpha’s annual Rich List ranking of top-earning hedge fund managers for all 14 years.
