Leading Hedge Fund Renaissance Technologies Targets Bitcoin (BTC) Futures for Its Flagship Fund
Renaissance Technologies, the juggernaut quantitative investment firm with around $75 billion in assets under management, is reportedly planning to begin investing in bitcoin (BTC) futures with its flagship fund.
As highlighted by a recent Coindesk article, Renaissance detailed in its March 30 Form ADV investor brochure that it has made the necessary moves for the Medallion fund to enter the cash-settled bitcoin futures market, with the intention to limit its activity to contracts on the Chicago Mercantile Exchange (CME).
This is a substantial revelation as the Medallion fund has been one of the best performing funds this year and since the firm was founded in 1982, underlining the strength of quantitative investment strategies Renaissance has pioneered.
According to a recent report in Markets Insider, Renaissance’s Medallion fund, which has around $10 billion in assets, is currently up 39% on the year through April 14. The fund has benefitted from increased volatility caused by the coronavirus pandemic, gaining an impressive 10% in March as the majority of hedge funds suffered losses.
Ultimately, by adding bitcoin futures to its list of potential investments, Renaissance is further expanding on its strategy to find assets that are decoupled from the overall movements of the S&P 500, allowing them to outperform the market.
Related: Jim Simons’ Renaissance scored a 39% gain in its flagship Medallion fund as the coronavirus hammered rivals
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.