He, Buffett and Soros also called the investment community "three insurmountable peaks".

While the whole network is pursuing Warren Buffett's impressive annual rate of more than 20%, the "Medallion Fund" managed by Fuxing Technology Company under his name has achieved an average annual rate of return of 35%, which is the enviable peak of the investment community so far.

Received a doctorate at the age of 23;

At the age of 26, he became an agent to crack the password;

At the age of 30, he became the leader of the department of mathematics in colleges and universities;

At the age of 37, he won the highest prize in geometry;

At the age of 44, he set up a legendary hedge fund company, which set off changes in the industry;

Established a series of charitable funds at the age of 56;

At the age of 72, he was selected as one of the richest people in the world 100 by Forbes Fortune List. In the same year, he promised in writing to donate most of his property to charity.

This is not the protagonist of the film, but a world-class mathematician, the most influential hedge fund manager and generous philanthropist-james simons.

Before he became famous on Wall Street, another identity of Simmons had already been recognized by the whole world, that is, a mathematician. At the age of 23, Simmons received his Ph.D. in mathematics from the University of California, Berkeley, and became a mathematics lecturer at Harvard University a year later.

In the process of completing his personal achievements in mathematics, he founded "Chen Yi Simmons' normative theory", which had a far-reaching influence on mathematics and physics. It is proved by mathematical theory that the distorted space described by Einstein's theory of relativity does exist.

Simmons has a very famous childhood story, that is, he thinks about why the oil in the car tank will run out one day, since half of it is used up, there is still half left. This story is called Zeno Paradox in the west, but it can't be told for half a century in the east. Of course, Simmons is not proud of this.

From this story, we can see Simmons' mathematical talent, which is out of the chart and lives up to expectations. He was admitted to the Mathematics Department of MIT. It took him four years to complete his undergraduate and master's degrees, and then he went to the University of California, Berkeley, to study for a doctorate in mathematics, and his research direction was topology.

This kind of life experience is what our parents often call "other people's children." 1967, Simmons decided to be the head of the Department of Mathematics at the State University of New York at Stony Brook. The reason why he got such a high position at once is that this school is newly built, and there was no math department in this school before. However, Simmons himself lived up to expectations, and now the mathematics department of the State University of New York at Stony Brook has become a mathematical shrine in the United States.

1976, Simmons reached the peak of his academic career and won the Nobel Prize in Geometry-the Van Buren Prize, which is awarded every five years. He is 38 years old. Of course, Simmons can support himself at this time, attending the annual meeting of academic groups every year and making some speeches in various forums, but he doesn't. On the other hand, he felt that the pace of academic circles was too slow, and it was impossible to publish a result for a long time, so he decided to change careers in the futures industry, which once made him a small profit.

1982, Simmons founded Fuxing science and technology company in new york. 1988, in March, he founded the first fund product, the Grand Medal Fund. 1989 to 2009, the average annual return was 35%.

Compared with the average annual return of the Standard & Poor's 500 Index in the same period, the trading performance of Soros and Buffett is more than 10 percentage points higher. Even in the subprime mortgage crisis in 2007, the fund's return rate was as high as 85%.

Simmons' company is a very special company on Wall Street. None of the more than 300 employees has a financial background. Even Simmons himself only pretends to be a "mathematician" and rarely participates in financial activities.

In the past 20 years, Simmons' Fuxing technology hedge fund has traded in the global market and used complex mathematical models to analyze and execute transactions, many of which have been fully automated. Fuxing technology company uses program model to predict the price of financial instruments that are easy to trade. The establishment of these program models is to make predictions by looking for those non-random behaviors after collecting a large amount of data.

From 1999 to 1 1 at the end of February, the cumulative return of the medal fund was 2478.6%, which was 25 times of the original assets. According to the data of Antonie Bernheim, a hedge fund observer, Quantum Fund in george soros is the second largest offshore fund in the same period, and its return rate is 17 10. 1%. In 2009, the medal fund ranked first among the hedge funds with the highest profit, with the profit exceeding $654.38 billion.

There are strict restrictions on the investment scope of medal funds, and the products invested must meet three conditions: "They must be traded in the open market, have sufficient liquidity and are suitable for trading with mathematical models."

Because of this, the medal fund does not include the shares of venture capital funds and unlisted companies, and the shares of some small companies and GEM stocks are not included. Generally speaking, there are more varieties suitable for trading with mathematical models, and the historical price and trading volume are more accurate.

From the end of 2002 to the end of 2005, the medal fund with a scale of $5 billion has paid investors more than $6 billion in return. 1990 The net return of the Grand Medal is 55.9%; 39.4% in the following year; The following two years were 34% and 39. 1% respectively. During the period of 1994, the Federal Reserve raised interest rates six times in a row, while the net profit of Medal Fund was 7 1%. In 2000, the S&P index fell 10% due to the crash of technology stocks, and the medal fund was bumper, with a net return of 98.5%. In 2008, due to the global financial crisis, the prices of various assets fell, most hedge funds lost money, and medals earned 80%.

On June 65438+1October 65438+1October 2009, Simmons announced that he would retire on June 65438+1October 2009, but retained the post of honorary chairman of Fuxing technology company.

The so-called "Gecko Investment Method" refers to making short-term directional predictions when investing, trading multiple varieties at the same time, and relying on a large number of transactions completed in a short time to make profits. In Simmons' words, "trading should be like a gecko, lying motionless on the wall at ordinary times, eating mosquitoes as soon as they appear, then restoring calm and waiting for the next opportunity."

Whether it is the 1998 Russian bond crisis or the Internet bubble at the beginning of this century, Medallion Fund has survived several financial crises, eclipsing the Efficient Market Hypothesis. It is generally believed in the industry that Simmons' unbeaten myth mainly benefits from his "Gecko Investment Law".

Twenty years after moving to the "second battlefield" in the investment field, Simmons proved his success with a series of data: from 1989 to 2009, the average annual return rate of medal funds he traded was as high as 35%, which was more than 20 percentage points higher than the average annual return rate of the Standard & Poor's 500 index in the same period, and higher than the trading performance of "financial tycoon" Soros and "Warren Buffett"/kloc-0. Even in 2007, when the subprime mortgage crisis broke out, the fund's return rate was as high as 85%.

Simmons' Ten Trading Rules:

1. Although our strategy will hold the investment target for a long time, we will conduct more than 10000 transactions every day on average. In fact, every stock in our portfolio will go up or down every other day on average. The diversification method we use is to allocate as many asset types as possible. On average, we will hold 2,500 to 3,000 different stocks.

2. During the Renaissance, there was a very good working environment and first-class staff, including doctors in mathematics, statistics, physics, astronomy and computer science. I don't know how to hire traders who do fundamental trading because they sometimes make money and sometimes lose money, but I know how to hire scientists because I have some feelings about this field.

3. If you trade fundamentals, then one day when you wake up, you may find yourself a genius, your position is always developing in your favor, you will feel smart, and you will see that you have made a lot of money overnight. However, the next day, all the positions are against you, and you feel like a fool.

Since you can make a model, you might as well follow it. So, at 1988, I decided to 100% rely on model trading. We've been doing this ever since.

5. Some companies also use models. But their purpose is that they have a model, and the conclusions drawn from this model provide reference for traders. If they agree with this conclusion, they should follow it; if they don't agree, they shouldn't.

6. This is not science. You can't simulate how you felt when you saw the market data of 13 years ago. Backtesting is very difficult.

If you really rely on the model to trade, do exactly what the model says, no matter how smart or stupid you think the model is, it turns out to be a very correct decision.

Therefore, we have established a company that 100% relies on computer models for trading, and our business has gradually developed from the foreign exchange and financial instruments I mentioned earlier to stocks and all other tradable and liquid things.

7. We have been buying, selling, selling and buying, relying on being active to make money. I'm a model, and I don't want to do fundamental analysis. One of the advantages of this model is that it can reduce the risk. Choosing stocks by personal judgment may make you rich overnight or lose your money the next day.

8. Some trading patterns are not random, but traceable and predictable. Those small transactions, even if only 100 shares, will have an impact on this huge market, and thousands of such transactions will happen every day. In fact, everyone has a black box, which we call the brain.

9. Trading should be like a gecko, usually lying motionless on the wall, eating as soon as mosquitoes appear, then restoring calm and waiting for the next opportunity.

10, I am not the smartest person in the world. If I take part in the Olympic Mathematics, my grades will not be particularly good. But I like thinking, thinking in my head, that is, thinking about something over and over again. Facts have proved that this is a good method.