How Billionaire Jim Simons Learned To Beat The Market—And Began Wall Street’s Quant Revolution

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Jim Simons’ net worth has exponentially grown since 2005, the 1st year he made Forbes’ Billionaires List

, Jim Simons was bursting with self-confidence. He had conquered mathematics, figured out code-breaking, and built a world-class university department at Stony Brook University. Now, he was sure he could master financial speculation.

Simons himself wasn’t sure he’d stick with trading. Three years later, Simons changed Monemetrics’ name to Renaissance Technologies Corporation, reflecting his developing interest in these upstart companies. Simons came to see himself as a venture capitalist as much as a trader. He spent much of the week working in an office in New York City interacting with his hedge fund’s investors while also dealing with his tech companies.

Baum’s losses in the 1984 trading debacle left deep scars on Simons. He halted his firm’s trading and held disgruntled investors at bay. The losses were so upsetting that Simons contemplated giving up trading to focus on his expanding technology businesses. Simons gave clients the opportunity to withdraw their money. Most showed faith, but Simons himself was wracked with self-doubt.

 

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