What the legacy of Jim Simons can teach investors about markets
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- เผยแพร่เมื่อ 4 พ.ย. 2019
- Gregory Zuckerman, special writer for the Wall Street Journal and author of "The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution," joins CNBC's "Squawk Box" to discuss his new book about the most successful money maker in modern finance, Jim Simons.
What the legacy of Simons taught me in this video:
Nothing.
Right.
😂
True - pretty barren, information-wise...
@@walterspaceman5592 Any body please explain it in hindi. With mathematical tools
Its a book commercial
this is why mathematics is so valuable, the fact that it can be applied in many different useful, and practical ways and this mathematician is now a BILLIONAIRE, that is amazing, its also heavily used in tech and in science fields which are very much needed.
this guy charges 5% management fee and 44% performance fee, before fees, his return is averaged at 66% per year, in other words, he cracked the system.
so why dont you invest with him?
MidNight cause his fund is capped at 10 billion and not even friends and family can get in now. It’s mostly a fund for the employees.
we need to find out if there will be other funds by him to invest his returns are better than anyone's
MidNight there are others, it is pretty easy to find out sonething like that but the returns of his other funds are not as good
He runs a public find Medallian as well but reported as not doing so well as his private employee and partner fund at Renaissance.
Jim has found a way to win the game without actually playing. Simmons is Like a football team with a fg kicker that can kick from 80 yards out. You never score a touchdown, but you win the game anyways.
Sometimes it's best for everyone on the team to focus on getting to first base as often as possible, and this often leads to the most points on the board at the end of each game. Take the doubles, triples, and home runs as they come, and try to avoid too many strike outs (or pop flies caught by the other team) that come too often when one worries too much about swinging for the fences.
Considering he has had 150% + years when the market was down. Id consider that a touchdown lol
Perfect analogy!
The equivalent to this has been done with horse racing with huge success, it was started in the early 90s. Huge amounts of data along with finding where the false positives and false negatives are, is where the advantages are gained.
Cool cheers from Portugal 🇵🇹
A huge amount of data and his mathmatics brilliance has managed to find an algorithm. His method is not for an average guy like me . I need to be a brilliant mathmaticians to follow his way of investing
True. Thats how difficult trading is.
Great Book will be reading this materials.
The autor maybe know the book " The Physics of Wallstreet" published 2014.
Good report.
Druck should be on the investor returns list, hasn’t he averaged 30% over the last 39 years with no down year?
kevi teri Druckenmiller was Soros’ main manager for a few decades, probably clubbed the returns with him. He should’ve been mentioned either way.
*over 30 years when he was “competing” as a fund manager before the family office
“I feel nothing. I’m numb.” - joe
DUMB*
Alexa, play linkin park
Guys what do u think, if they really figured out a pattern, Why do they want u to know it..
they dont and his book wont tell anything interesting
@@kevinparsley6806 Do you know what kind of asset allocation he does? Any clues'?
ABHISHEK CHAUDHARI his book doesnt tell anything lol
Yes, there is a pattern, but it's not revealed.
If they let us know their “secret sauce” then they can’t profit from it
So he take positions on both sides of a trade ?
Where can i Buy stock market data ?
BSE MOEX STOCK MARKET DATA FREE 🆓🆚 NASDAQ STOCK MARKET DATA PAID 💰TRADING VIEW INFORMATION
If any trader ever doubts what's been talked about here hit me up and I'll show some of the models or patterns. I don't have their systems but what I've managed to come by so far is mind boggling. The price chart is simply a mathematical function and of u have tools to identify the rate of change of the function aka price ure golden! This models shows up on even on the smallest timeframes like the 1min. The markets is fractal in nature. All we must be looking for when trading is the rate of change and price is the last thing to change on the charts. Peace!
hey can you explain it to me thank you.
They don’t model the market as much as they market large institutional rotations
Average Holding Days is around 2 days. Interesting!!
That too with 5,000 stocks.
he was a trader or investor?
@@manisshthakur621 money manager.
My personal is about 3-4. Surprised about it.
I just recollect the book when the genius failed, insolvency of LTCM
To my view, Simons may have overstated the importance of quant model: some years his core fund outperformed non-core funds which, reported by media, seems to be front-run by his core fund.Steven Cohen is a suspect of insider trading as his formed fund firm was dissolved by all sorts of legal suits;;;
Rentech does large scale statistical arbitrage. Law of large numbers works in their favor plus they have insane leverage and tax optimizations for Medallion. Their other funds don't do as good because they use the discarded signals that isn't incorporated into Medallion.
Steve Cohen gets 30% with insider trading and 1% without it (Point72 performance)..
Cohen is said to use lots of options. If you have a lot of money to start with, and you're buying both puts and calls on very volatile securities, you're probably going to make serious money over time - particularly when you can buy those options cheaply.
If you have very little money to start with, options may not be a strategy you'd want to fool with until you build up a decent sized nest egg. You also want to be very careful when selling options.
There aum is also very small
Their position must be small
Otherwise they become visible in the markets
They can't implement their model with large capital
Jim’s simons have already revealed that his strategy have market patterns which is available online. You just need to control your emotion and place stop loss and take profit which hav at least 3:1 risk reward. Of cause with win rate of at least 60-70% u will be doing great
@Peter North Rising they use alot of margin tbh.
@Peter North Rising 10x to 15x most likely.
Quants are the new CDO managers, you just trust them because you can never understand the models.
All of those algorithms don't work.
@@zacksnyder4082 and why’s that?
@@hwago123 I think people are confusing a euphoric market with their algorithm working. Algorithms can't make determinations about potential changes in future outlook. They can only look back on past data to try and make determinations. If they worked, there would be a lot of billionaires. Essentially, they just follow trends
@@zacksnyder4082 You don't have a clue what you're talking about.
Ray dalio 12%..it looks ridiculous compared to the others
He's more conservative. Since most rich people are older people, and most older people are more conservative in their investments, it is generally a wise strategy for a fund manager to be more conservative and transparent with client money.
Dalio's returns have been more modest than the others, but many people with money (particularly older people who are retired and not in a position to take big risks) will prefer to invest their money with someone who is more conservative and traditional, and who is personally very open, transparent, and has no real secrets.
A typical 65 and over retiree is probably going to be more reluctant to give very many of his millions or more he worked hard for to someone running a black box that generates constant short term capital gains, pays no dividends or bond interest, and whose managers admit to having limited understanding of traditional business, accounting, etc... and use 3000 trades a day based on historic chart patterns and other technical signals to generate returns. No matter how high those returns are reported to be.
If I had been born a generation or 2 earlier, and had an extra $100 million or so laying around decades ago when both Dalio and Simons were accepting outside investor money, I probably would have been more comfortable giving Dalio a much larger chunk of my wealth than Simons. I would have seen Simons's fund as being riskier (although obviously generating much higher reported returns), and would have been more comfortable with Dalio's incredible knowledge of economics, business, accounting, etc, and willingness to share it and explain everything.
I like Warren Buffett and Peter Lynch both are big Bulls excellent stock pickers
Max was here
WHEN GENIUS FAILED, BEWARE!
@Bradley Johnson just learn the history of LCTM/LTCM (i forgot wich is right)
I actually solved the market and I'm 29. When I own the financial sector in 12 months, we can argue if I'm brilliant or jesus.
LOL
jesus dude one comment on one video is enough.
@@kevinparsley6806 has anyone great ever became great after hearing and accepting your advice... and they never will, so shut the fuck up loser.
Well.. if you provided anything beyond the claim of a non supported allegation of an entirely arbitrary statement, then your comment would be taken seriously.
But since this is TH-cam, and anyone can say anything pertaining to anything about anything with no foundation or evidential support to back it up.. we are going to have to dismiss you entirely.
What you smoking?
I descover that the market is simple and before it become simple its hard to pick up your mind and i solve in 70 days
Jim simmons totally makes Jessie Livermore look like a preschool
nice to know i have no emotions
“I feel nothing. I’m numb.” 😂
To whose who are born to crawl will never be able to fly.This is old saying but it works every time.Some understand this, majority don't. That is why so many Shmocks are roaming around.
RİEF Fund returns gross or net of fees?
damn
1:30
The writer has no clue, no brainer. Much ado about nothing.
?
Moral:Dentists love to invest
this guy is annoying. let me tell you book writer... most of the people that look at these promo videos already know who jim is and probably already know more than is in your book.
I'm reading it right now. It's great.
He was magnificient mathematican who wasted his talents on the rigged gambling market, I mean the stock market.
lol he still is a Mathematician and getting billion overnight aren't that bad I guess
"they went back thousands of years" wow...
the mkt was found 1817, how is it that went back thousands of years @BeckyQuick 2:35
@@qwfxny Academia, historians. Trade has been around forever. Just that computerised data isn't there. But books are & they can be scanned & analysed by machine learning algorithms.
Nope.. i cringed when that stupid woman said that...
So embarrassing.. only someone who has no basic knowledge of history will utter that nonsense.
teaching math, really, so rude
No single new information that you can't find in the web. he just collect data and do models.
jim simons > george>raydalio>paul toder jones
Banks have been our downfall since their inception.
Yeah, civilization hasn't advanced at all over that period
The level of ignorance in this comment is absolutely astounding! Wow!
Whether you like it or not, without banks, there would be no economic growth. The institutions themselves aren’t the problem, it’s the people running them.
What a boring way of investing! Intuition (+ micro/macro trend awereness) is the greatest way of playing, IMHO. Usually, I don't even bother to read compinies' financial results (except for the bullet points), waste of time. Technical analysis is boring, as well.
Isn't technical analysis what is achievable? No emotions no fundamentals just going off on principles n indicators
And how’s that working out for you?
@@hwago123 Doing just fine, thank you. I've got currently about 200 different stocks in my portfolio. Would not even have time to read all their reports! I group them according to the sector and pay attention to that (+macro happenings in the economy).
Seems like you are from the Wallstreetbets crowd.
@@phillaysheo8 No.
The guy who ruined the stockmarket, Thanks Jim!!!
@Alexander Bayer most trades are a zero sum game. If he's buying low and selling high, you're on the other end buying high and selling low.
@GODESTINY and when you sell something, the next buyer is at a lower price and the price of the stock goes down.
The stock price doesn't stay at the same price when someone sells their shares
@GODESTINY yeah, if you sell one share, lol
This guys are making billions. They don't just buy a couple shares. They close out sell orders that are priced low to get into a position, and then take all the higher orders to get out of the position. Pump and dump. The people they sold to are left holding shares that are now worth less
GODESTINY you are absolutely correct. You and I can buy/sell stock with one another OTC and it will NOT influence the market price. However if we transact on the stock market it will.
I like how they make it sound like it is a good thing that the rich in the future will beat any non-rich person trying to trade for a living with their AI/bots. It is a big win for the rich and a big loss for the people. Try imagen how good the bot will be at even manipulating the markets and predict the human anti manipulating tactic of human-beings and counter that...
There are many reasons why i suspect that this is simply a scam
Have you ever read the book?
This Simons guy didn't produce anything of value. He just invented a way to tax people who use the market. Most of the times you trade against his computer algorithms you lose a tiny bit. Without him, people would get more out of their investments. IRS is happy to allow this with the condition they're heavily taxed, because it's basically another form of tax.
@Bradley Johnson don't mind.
He is just bs ing
I make 100% a month consistently for 3 years
Ponzi scheme?
Congrats on being a trillionaire then.
pffft. Big deal. I do that a day
2^36 = 68'719'476'736