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Jim Simons: The Mathematician Who Cracked Wall Street: Video Presentation
FYI: Jim Simons was a mathematician and cryptographer who realized: the complex math he used to break codes could help explain patterns in the world of finance. Billions later, he’s working to support the next generation of math teachers and scholars. TED’s Chris Anderson sits down with Simons to talk about his extraordinary life in numbers. Regards, Ted http://www.ritholtz.com/blog/2015/09/jim-simons-the-mathematician-who-cracked-wall-street/print/
The Simons' interview does not reveal any practical investment insights that individual investors can exploit.
The guts of the Simons approach was to collect, slice, and dice countless financial data using computers and thousands of candidate correlations. His team exploited the transient market anomalies. They were traded away and his team needed to discover replacements.
His success was due to his deep research, but also due to the thin competition that existed at the time he initiated his strategy. Nowadays, other professional firms use similar methods and have neutralized the Simons' advantage. Today, all these investment outfits access high speed computers that are programmed by. science and math experts. Simons benefitted by being early into his game.
Most of us do not have direct access to that game or the team needed to execute his transient market dislocation discoveries. For an active investor, investing is a tough nut,especially when competing against the institutional firms that now dominate the trading volume.
Given those circumstances, passive Index investing is an attractive alternative.
Comments
Derf
The Simons' interview does not reveal any practical investment insights that individual investors can exploit.
The guts of the Simons approach was to collect, slice, and dice countless financial data using computers and thousands of candidate correlations. His team exploited the transient market anomalies. They were traded away and his team needed to discover replacements.
His success was due to his deep research, but also due to the thin competition that existed at the time he initiated his strategy. Nowadays, other professional firms use similar methods and have neutralized the Simons' advantage. Today, all these investment outfits access high speed computers that are programmed by. science and math experts. Simons benefitted by being early into his game.
Most of us do not have direct access to that game or the team needed to execute his transient market dislocation discoveries. For an active investor, investing is a tough nut,especially when competing against the institutional firms that now dominate the trading volume.
Given those circumstances, passive Index investing is an attractive alternative.
Best Wishes.