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

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An exclusive excerpt from Gregory Zuckerman's new biography of billionaire Jim Simons, 'The Man Who Solved the Market'

, 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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How Billionaire Jim Simons Learned To Beat The Market—And Began Wall Street’s Quant RevolutionRead an exclusive excerpt from Gregory Zuckerman's new biography of billionaire Jim Simons, 'The Man Who Solved the Market.' benruilangat Automated trading systems produce profits from electronic front running. In the summer of 1978, 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
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