However, the data shows a completely opposite result: the three large number of global giants fell collectively. Renaissance (Renaissance Technologies), Two Sigm and DE Shaw all saw a sharp drop in performance, which the industry said was a "quantitative earthquake."
It is reported that the three giants manage a total of nearly US$200 billion in funds (approximately RMB 1.4 trillion).
At the same time, Wall Street has also reported salary cuts and layoffs to deal with survival problems.
, which controls 1.4 trillion yuan, has all suffered from the performance of
, and the computer cannot keep up with the capital market that has been turbulent due to the epidemic.
The three global quantitative giants that are familiar to the asset management circle: Renaissance, Two Sigm and Deshao. They rely on powerful computers, massive data sets and algorithms to systematically utilize securities price patterns, make trading operations, and have achieved outstanding excess returns over the past few decades, becoming the pioneer in the industry.
Currently, the three manage nearly US$200 billion in funds (approximately RMB 1.4 trillion).
Renaissance: 24%
Renaissance is one of the most famous quantitative hedge funds in the industry. It is reported that since 1988, the Renaissance flagship funds have an average annual return of nearly 40%. However, the Renaissance has fallen recently and the losses are expanding.
According to FT, people familiar with the matter revealed that its flagship agency Revival Vientiane Institutional Equity Fund, which usually holds a long position, has fallen 18% in March, and has so far fallen to 24% this year.
As of Friday, Renaissance’s institutional diversification global equity fund fell 15.8% this year.
According to eurekahedge, the six Renaissance products with a scale of over 10 billion US dollars have all had negative performance this year.
Renaissance was founded by mathematician and former code cracker Jim Simons and one of the most profitable hedge funds in the world, controlling $60 billion in hedge fund assets. It has made outstanding performances over the past two decades. Its flagship Medallion fund was so successful that it shut out external investors in 2005, managing only the funds of internal executives. Simmons Mr. said last year that Medallion’s average annual rate of return (after expenses) has been around 40%.
TwoSigma: 13% drop
According to sources familiar with Two Sigma, its flagship spectrum spectrum fund fell nearly 2% this year. But its "global macro" compass fund performed worse, down 13% as of Friday, while its absolute return fund fell 3%.
Two Sigmas were founded in 2001 by computer scientist David Siegel and mathematician John Overdeck, who met while working together at DE Shaw. Although the company is younger than Renaissance and DE Shaw, the two Sigmas have grown rapidly over the past decade and are widely regarded as leaders in quantitative investment.
Deshao: Products lost for the first time since 2008
Meanwhile, Deshao's main fund Composite fell 2.6% in the month ended last Friday, bringing it to a negative this year. It is reported that the fund has a scale of US$13 billion.
Its global macro fund Oculus fell 0.8% this month, but remains a rare outlier in the hedge fund sector, up 2.5% so far in 2020.
But Deshao's most exclusive and valuable "statistical arbitrage" hedge fund Valence fell more than 9% this month, while falling 4.6% for the full year. This is the first rare decline in Deshao, as market turmoil disrupts many of the signals computer-driven tools rely on.
It is reported that Valence's assets reach US$6 billion, charging 3.5% of the assets it manages and charging 35% of the profit it generates, almost three times the industry average.
Deshao is one of the world's largest and most famous hedge funds . First, because it is a pioneer in the "quantitative" investment industry, and second, its returns are stable.The comprehensive fund has suffered only one year of losses since 2001 (an increase of 8% in 2008) and has achieved double-digit returns in seven of the past 10 years.
Both and shortness are difficult to both long and short
This year's quantitative fund average loss is 14%
Credit Suisse estimates that since the beginning of this month, the overall holdings of quantitative funds have almost halved, and this year's average loss is 14%. "There are signs that attitudes towards the economic impact have changed a lot since the coronavirus," the bank's hedge fund service desk said in a report to clients on Sunday. "Risk is difficult to manage." In this environment, most funds have experienced tough times for long and short. ”
Wall Street begins to cut salaries and lay off employees
According to Reuters , in this wave of plunge, Wall Street began to cut salaries and lay off employees.
According to industry insiders and bank executives, Wall Street’s bonuses will fall by about 30% this year, and many companies are considering layoffs in response to the recession caused by the epidemic and retain profits.
Executive of a Wall Street bank said his department is still deciding whether to lay off employees.
Executive of a competitive company at the bank said that Wall Street is expected to lay off employees in the next few months as bank mergers and acquisitions and IPO markets are stagnating. He said: “It is really difficult to support the basic expenses of employees. "
Salary Consultant Alan Johnson said Wednesday that as the coronavirus hit the market hard, businesses were forced to close, millions of people were unemployed, and the financial industry's bonus could drop as much as 40% in 2020.
Johnson analyzed that Wall Street could cut salaries for nearly everyone and delay paying salaries to save cash. "Good employees could be delayed, bonuses were reduced by 15%, while those deemed "understandard" could be laid off. ”
This article is from China Fund News
