The fund has a very low cap and their employees can only put in a certain amount in the fund in the first place (depending on seniority and individual performance).
Also, you're assuming everyone who's put money into the fund has never taken it out, which would throw off your math quite a bit.
Medallion fund is said to be about $10B, and at capacity - that means that returns don't compound, because they pay out the profit each year as they can't invest any more money.
Re:How much do hedge fund traders earn?
by auntienomen on Wednesday May 10, 2017 @09:22PM
(#14313256)
You're confusing RenTec with the Medallion fund, which it manages. RenTec manages other funds as well. Their AUM is the sum of the assets of the funds.
Kind of a side point but I don't see how this can be true. Wikipedia says Renaissance had $65 billion AUM as of 2015. If we back-track this compounded at 71.8% annually, that means Renaissance must have had at most $1.2 million in 1994, which is implausibly low. And $1.2 million is a maximum, because that figure assumes Renaissance hasn't received any new capital since 1994.