What can be learnt from the world’s most successful investor and trader? Jim Simons achieved an astounding average annual return of 66 percent from 1988 to 2018, before management fees. Contrast this with: Peter Lynch 29 percent, Warren Buffet 21 percent, George Soros 20 percent, and Charlie Munger 20 percent with the average annual return on the Standard and Poors index of 10 percent.
What can be gleaned from Simons, a math genius who solved this management problem? Given management involves unpredictable human behaviour, and all sorts of other variables, not everything can be solved by an algorithm.
