HomeNewsBusinessMarketsJim Simonsâ 5 principles: Legendary hedge fund manager lived by these tenets
"I did a lot of math. I made a lot of money, and I gave almost all of it away," Simons remarked at a 2022 event honouring Abel Prize winners recognised for their mathematical achievements. "That's the story of my life."
May 11, 2024 / 12:23 IST
Jim was actively involved in the work of the Simons Foundation until the end of his life.
Jim Simons, a mathematician who evolved into one of the most successful investors in modern financial history, died at age 86. A pioneering code breaker and geometer, Simons spearheaded a trading revolution, adopting a computer-oriented, quantitative approach in the 1980s well ahead of the Wall Street crowd.
He and his team utilised trading algorithms and artificial intelligence to consistently outperform the market, surpassing even the achievements of Warren Buffett and George Soros.
Under Simons' leadership, Renaissance, whose Medallion Fund delivered average annual returns of more than 60 percent over three decades, emerged as one of the world's most successful hedge funds. He retired as chief executive officer in 2010 and stepped down as chairman in 2021. With a net worth estimated at $31 billion by Forbes, Simons later became a notable political donor and influential philanthropist in the realms of science, health, and education, donating billions of dollars to support medical and scientific research, education, and Democratic candidates.
Also read:ÂHow Jim Simons pioneered quant investing to be best investor of all time
As a mathematician, Simons was accustomed to handling large datasets and adept at discerning patterns to inform trading decisions. In 1994, Simons and his wife, Marilyn, established the Simons Foundation, which aids scientists and organizations worldwide in advancing research frontiers in mathematics and the basic sciences.
Related stories
"I did a lot of math. I made a lot of money, and I gave almost all of it away," Simons remarked at a 2022 event honouring Abel Prize winners recognised for their mathematical achievements. "That's the story of my life."
Here are five principles Jim Simons lived by:
âBe guided by beauty.ÂJust as a great theorem can be very beautiful, a company thatâs really working very well, very efficiently, that can be beautiful.
Surround yourself with the smartest and best people you possibly can. Let them do their thing. Donât sit on top of them. If theyâre smarter than you, all the better.
Do something original. Donât run with the pack. If everyone is trying to solve the same problem⦠donât do that.
Donât give up easily.ÂStick with it. Stick with it not forever, but really give it a chance to get where youâre going.
The final principle is hope for good luck. âThatâs the most important principle"
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sucheta Anchaliya
Tags: #BankNifty #Market Edge #Nifty #Sensex
first published: May 11, 2024 12:19 pm
`); } if (res.stay_updated) { $(".stay-updated-ajax").html(res.stay_updated); } } catch (error) { console.log('Error in video', error); } } }) }, 8000); })
