US
We’re slightly behind with this, given that it was published in the Wall Street Journal on March 16th, but as part of today’s high frequency trading ‘series,’ we’re leading with it anyway.
The WSJ’s article suggests both what it’s like to work for one of the world’s leading quant funds, and the kind of people who work there. It reveals, for example, that Ren Tech employs 90 PhDs and that the two new chief execs (like many algorithmic traders and quants) have a background voice-recognition technology, both at IBM.
At Renaissance’s US office, the WSJ also reveals there’s no real trading floor (as all trading is automated). Most people work in individual offices and commune in the lecture theatre or library. And in the library, there’s a fire place.
If this makes Ren Tech sound more like a private club than a bank, that may be correct. The two new chief executives are thinking of closing two underperforming funds (probably resulting in job losses) which are open to investors. If this comes to pass, the WSJ says it would mean the fund was open almost exclusively to a small inner circle, most of them employees.
Those employees are likely to do very well for themselves. Since 1988, the firm’s $10bn Medallion fund has averaged returns of about 45% a year. Unsurprisingly, there’s apparently no retirement programme at Ren Tech, the intention being to ‘get rich.’
‘Massive surge’ in trading at the start of 2010 said to account for 20% of all trading in 2009 (at one firm) (Reuters)
Yet another senior ex-Lehman Nomura banker quits. (Bloomberg)
Senior ex-Lehman staff in Europe are due to be paid out on April 1. (FT)
Morgan Stanley derivatives saleswoman becomes a chef. (Bloomberg)
UBS, Barclays Wealth, and Morgan Stanley have been hiring. (Reuters)
UKFI have appointed Heidrick & Struggles to find a new head of market investments. (Financial News)
SocGen hires US fixed income vet. (BusinessWeek)
Five reasons to steer clear of US bank stocks. (Globe and Mail)
This sounds like bad news for pay in capital markets and M&A. (Cityam)
James Simon has been one of the best paid Hedge Fund managers for many years. In 2007 he was estimated to have personally earned $2.8 billion, $1.7 billion in 2006, $1.5 billion in 2005. The person in charge did a PhD in Computer Science. And they have jobs open for genius programmers on the homepage: https://www.renfund.com/vm/data_programming.vm
is the government going to try and blame them for the crisis and levy a special tax as its wrong to make money from being smart – you should be on benefits and cry fowl if anyone is a success or even more to the point – the politicians need to make themself rich through taxes whilst also being single handedly the most inept corrupt “company” in history