Recently, we did a post about George Soros, one of the most successful hedge fund managers in the world. Well, Mr Soros is not the wealthiest hedge fund manager, despite his success in the career path. That title goes to Jim Simons and we are going to take a brief look at who he is, in this article.
Meet Jim Simons
Jim Simons is the founder of Renaissance Technologies, an esteemed quantitative trading hedge fund firm that sits on top of a massive $55 billion fortune. Jim founded his hedge fund, Renaissance Technologies, in 1982. Although he retired in 2010, he still plays a role at Renaissance and benefits from its funds.
Simons has given $2.7 billion to philanthropic causes. His foundation is the primary funder of Math for America. He also supports autism research.
How do hedge funds make money?
Hedge funds make money by charging a Management Fee and a Performance Fee. While these fees differ by fund, they typically run 2% and 20% of assets under management. This incentive fee motivates the fund to generate excess returns.
In layman’s terms, hedge funds charge a percentage of the assets they manage. Therefore, they are motivated to make a high return on investments as it directly increases their net worth too.
Jim Simons’ net worth
According to Forbes, Jim Simmons is worth $24.6 billion .
Jim Simons used to Chair the Math department at Stony Brook University and was a codebreaker for the U.S. during the Vietnam War.