Wall Street’s Biggest Secret (The Medallion Fund)

[@battlefield5826]

I bet I can bring it down 50 % as soon as i invest in it

[@AndreiJikh]

🤣 the true test of the fund

[@ferr0gan]

Hands down best comment of this month

[@sintay8002]

Just only put in a dollar (if that’s possible) and watch everyone else lose money

[@myxalplyx]

Start your own Medallion Fund Short ETF after u put your money in. 😝

[@newvideoplaylist]

😂😂😂

[@Monzt3r]

"I gave almost all of it away" he says with a straight face while his net worth sits at $30.7B from a private fund.

[@GUNNER67akaKelt]

Which maybe says more about how much he gave away... Maybe if he hadn't, he'd make Musk look like he was just 'sorta' rich.

[@randyosborne3971]

He walks and talks and looks like Bernie Madoff. The one trait they all participate in that gives them away? They are HUGE in philanthropy.

[@nestosauce]

$30.7B is the low end of what he could have had

[@momentumstocks3493]

LOL.....they are trained to act like this

[@AlessandroBottoni]

Great video, congratulations! Jim Simons, Renaissance Technologies and Medallion Fund are well-known and deeply investigated topics, so it is very hard to make a new, stimulating video about them. You just succeded in doing it.

[@unknownwarrior5672]

Please do more of these Andrei, they’re entertaining and educational at the same time!!

[@YaBoiBond]

" We can't put a lot of money in it or we will push the markets too much." I took that as he pushes the markets a little and that is probably all you got to be able to do to obtain that sliver of an edge.

[@momentumstocks3493]

yeah...a little pushing is good.."

[@farloux]

Exactly. They force market movements by abusing market maker mechanics by forcing MM delta hedging.

[@Killacam1992]

@@farlouxyou’re one of the few ppl who knows what he’s talking about. Few ppl even know about this. Well said.

[@CodyKoehler]

I feel like the odds of this are crazy. But literally today I was talking about the medallion fund to someone at work, which is not a normal occurrence. And now I come home and see you posted a video about it yesterday. Life is strange, gotta love it.

[@AndreiJikh]

That's pretty crazy!

[@jareda8943]

i clicked on this because of the thumbnail. nailed it.

[@daviddominguez7545]

Lol yeah, thats was pretty extraordinary lol.

[@maranpakeer]

Same lol

[@broken_casper]

I clicked it bc it said wall st 😭

[@camaranpayne5355]

​@@broken_casper Um

[@633ohioc]

I see what you just did there with your comment

[@timothyblazer1749]

What's important to understand as well is that computing and data in 1988 was orders of magnitude less than now. This means that medallion, at least during the first decades, was NOT using big data. They were using MATH. They found some set of mathematic principles that created their success.

[@someonethirsty1957]

They did. Reading the charts is probably the hardest part, although some of it is probably a lot less complicated than you think. There was a guy that used to be on KZbin called the popular investor. The last project he was working on before he got rid of his channel was creating a fund better than the s&p. I don't remember what criteria he was using to create the ETF, but it was not terribly complex. Some reasoning that makes sense.

[@momentumstocks3493]

So is it breaking down now?

[@momentumstocks3493]

?????? WHAT@@someonethirsty1957

[@timothyblazer1749]

@@momentumstocks3493 no idea. I have no visibility into their method. Wish I did :-)

[@tomahawk1542]

They had A.I early

[@jackreign67]

Been watching Andrie for years and this was by far one of the most interesting and entertaining videos I have ever watched. Thank you for all educational and fun videos you create . I really respect and appreciate all the time and effort you put into your content. Thank you again

[@AndreiJikh]

Appreciate the kind words, I worked hard on this one, so it took me a while but I had a blast with it

[@dollarbill9073]

Great job!@@AndreiJikh

[@lcbtcethada3957]

Thank you Andrei! You truly are one of the best at educating everyone that wants to learn about the finance world as a whole.👍👍

[@maui2erika]

YOU describe the most complicated subjects in a way that is easy to understand. Thank you Andrei - ALOHA from MAUI

[@AndreiJikh]

Wow, thank you! BTW, I love Maui! Hope you're well!

[@ironspider9280]

Hands down, this was the coolest and most interesting finance video that I've ever seen. Well donee!!

[@AndreiJikh]

Glad you enjoyed it!

[@myxalplyx]

At this point, the Medallion Fund IS the anomaly. They are the fund that pushes things a little this or that way to bring the results. The Market Maker's market maker.

[@dongshengdi773]

Time traveling Aliens

[@AstorSkywalker]

Isn't this "front running"?

[@LookNowLookBackNinja]

Thank you for this lesson in history Andrei. Great work and very entertaining as always!

[@AndreiJikh]

Thanks again!

[@cristobalcardona4135]

Bitcoin ETF approved!

[@CharlesVaughn-bm9gq]

Buffett worth 100B, Simons 25B. Both have given away a lot, Buffett probably 30B.

[@light0000]

Amazing video. Thank you for this information. Your story telling and pace and everything is so on point i could watch this again.

[@AndreiJikh]

Glad you enjoyed it!

[@marcusaurelius2013]

Clearly a time traveler is behind this

[@AndreiJikh]

Obviously!

[@MatthewKehn187]

Andrei…😮 I’ve been reading this book for the last couple days. Great book. Great video!

[@NikolajKuntner]

Every theoretical physicist and many a mathematician knows Simons from gauge field theory, which is what he did before. I talk about him in videos, but never so far in relation to finance. It's also the case that he had two sons die at adult age. Sports accidents and so on. Money can turn out to be a bit of a curse sometimes.

[@BigHotSauceBoss69]

his short speech at the end goes to show you how much the money meant to him at that moment. nearly nothing.

[@NikolajKuntner]

@@BigHotSauceBoss69 I'm familiar with both the cited interview (Brady from numberphile) as well as the speech given at the event. I gotta say, I'm always a bit skeptical regarding the giveaway claims. It might well be genuine, but surely often those money pipelines, Simons foundations in his case I think, is motivated by the tax law.

[@sid35gb]

The scary thing is the AI revolution could kill investing. Because if he is only looking for subtle mathematical patterns a properly configured AI should be able to do the same and some muppet will figure it out and break the market. All the big financial companies are investing in AI so at some point it will hit critical mass.

[@jackcarlos]

Damn super cool. Refreshing video compared to all the "FED RATES GO UP/DOWN" videos

[@jamesbubbastew]

I just found out about Jim Simons yesterday and their you are Andre posting a video. Perfect timing! 😊

[@AndreiJikh]

Perfect!

[@jamesbubbastew]

If only i found out about him in 1988 😂 Thanks the reply mate! Keep up the awesome content 💪💪

[@clarkroberts5603]

Its not the .75% edge, its their payout if they win , peter lynch talked about this years ago in the 90s if you buy 10 companies that have the capacity to 10x and limited downside you may only lose seriously on two, six will be ok, and two will 10x, every 1/10 bet has the chance of giving you 100% return. If you are not right even 20% of the time and your time horizon isn't prolonged you win pretty big.

[@clarkroberts5603]

What jim did is add leverage and relatively predictable cases, used computers to find a way to skim without pushing the markets around

[@muhammadc8224]

Appreciate the hard work and research you put in week after week, providing us with this insightful content!! 261 viewer

[@AndreiJikh]

Thank you!

[@MiguelArciaCaballini]

Love andrei because he doesn't recycle his material like his good friend Graham stephan putting out the exact same video every week. Keep up the great work Andrei!

[@xuandong8513]

Still not getting why using leverage can limit their losses..

[@chineduugoagwu3232]

that because he does not understand what leverage

[@chineduugoagwu3232]

is

[@NathanHarrison7]

Great video. Thank you. You were the first video, I watched on this Fund, that explained why it was “only” a $10 billion Fund. Subscribed.

[@sgonged]

What?!?!??! You did it!!! :) Your explanation of the Medallion Fund is very well done! So Awesome!!! 😀😀😀

[@AndreiJikh]

Yes! Thanks for the comment haha, it was inspired by the comment you left

[@phance]

Thanks for leaving the comment! Such an awesome video

[@supercruchynoodle]

I just majikhally realized that Andrei is wearing my favorite watch - swatch diving watch ❤

[@travistarr9433]

KZbin algo spot on with this recommendation

[@E_mailMeLater]

Jim Simons has changed lives.

[@AndreiJikh]

He really has

[@farloux]

I think they abuse market maker mechanics. They force MM delta hedging by positioning high delta in short term time periods. Sometimes they get lucky and force gamma squeezes.

[@farloux]

The leverage they use isn't margin, it's options. High delta leveraged options.

[@ritualgentle904]

Great video, not much value, but still a great watch Thanks for being consistent Andrej

[@greg5892]

Wow what a backhanded compliment

[@saulmoreno3252]

Between this,black rock and dirty politics, what game are we involuntarily playing?😅

[@davidblackmon7922]

My favorite KZbinr ever!

[@rawlvee]

same here

[@puravidaot]

Appreciate your content and honesty

[@boberto1979]

Thank you for this great video. This is a great example of why all these “magic indicator” that cost an arm and a leg are mostly, can work to a point but truthfully they are rubbish because if it were a magic tool, it would not be open to the public and this is a perfect example to all the newbies.

[@LovesGrilling]

This level of quant computing didn't exist in the 90s.

[@AndreiJikh]

As far as the public is concerned, but at least in the financial sector it seems like it was around (at least in the beginning phase of it)

[@masterwatch]

I am liking your watches, I have a feeling you're a watch guy. When I fly over the pond I will come do a video if that is ok with you.

[@ckcondorcet]

Great editing, thx! All the best for a formidable 2024 from Germany!!

[@AndreiJikh]

Thank you very much!

[@ScoreGuru123]

Germany is going down the toilet in 2024 along with the EU. Thank God for Brexit !

[@DavidAlmaguer]

I wonder if they invested in Enron and knew when to pull out. A warning like that could’ve saved people’s retirement

[@BrianSchoedel]

Good book recommendation! 📈 nice fifty fathoms.

[@chris-cx2rv]

They need to let the government invest in it so they can pay down the national debt

[@DeadSinceBirth_]

😂 the world debt instead! To who? Pluto? Or Uranus?

[@robmontana4971]

Fantastic video Andrea…I was glued to the screen! Thank you.

[@AndreiJikh]

Glad you enjoyed it!

[@gregwasik]

pretty clear someone has figured out time travel and went back in time to start the Medallion Fund lol

[@robtimothyfletcher5957]

Boom! Great video topic. Thank you Andre

[@jasdeepsingh791]

I’m going to apply to be the janitor at renaissance technologies 😂 I must have access to this fund

[@AndreiJikh]

haha let me know if you get in, I'll help with mopping!

[@GS_STRATEGIES]

Amazing video. Thank you for making this.

[@lilychiang12]

I enjoyed this video and am going to get the book.

[@AndreiJikh]

Hope you enjoy it!

[@AmirhamedKhandan]

%50.75 win rate is actually a really good win rate. This is because most of the winning trades are leveraged and the losing ones are closed early. Even if we assume a 2:1 RR, That's still really good.

[@drommer007]

Are they as good as Bernie Maidoff was at his peak? Anyone see any resemblence?

[@wardoc22]

the explanation for margin makes no sense. margin increase your liability. if you have one dollar and leverage it to 20 to make a bet that loses 100%… you don’t suddenly not owe your brokerage the margin..

[@annie_the_great]

I think he means that since they have a 10B cap for the fund they can keep that 10B intact while leveraging.

[@someonethirsty1957]

Glad to see your finally learning the efficient market hypothesis is incorrect.

[@WormHat]

Great vid! Awesome watch btw

[@Brian-Dean]

That's not the actual definition of EMH, it's the popular misconception.

[@JIYkp]

Dang, I wonder what it would take to recreate even a little of this.

[@AndreiJikh]

A lot of mathematicians, data, and a few billion to start with :P

[@ILoveTinfoilHats]

20x leverage is insane. A 5% drop would instantly wipe out everything you own.

[@Kabul-v2h]

Good one Andrei.

[@mikester74]

Very interesting video! I really enjoyed! Thanks Andre

[@clifcody]

Well done video! Laid out the context very well

[@yeaplye9080]

Feeling like listen to this clip equal to not listening 😂😂

[@Soxandnicole]

I can't help but thinking Ponzi scheme. Or too good to be true.

[@theleagueofshadows100]

Liked and subbed homie 👍✌️

[@Jfcurr]

Andrei make a video of the benefits/differences between buying the Bitcoin ETF and buying in Coinbase and sending to cold storage. Specially when it comes to fees for accounts under $100K.

[@mikemcc1156]

Who's afraid that something like a sophisticated AgI will begin to manipulate the market in some way before noticed or maybe even until it's too late

[@saradtomlinson764]

“Margin of error” good one haha

[@2LiL-BiT]

Absolutely fascinating!

[@Adammorris23435]

The Man Who Solved the Market by Gregory Zuckerman is the name of the book.

[@manuelfuentes9382]

Great book

[@Dr.Darkness007]

That's why I trust mathematician. RIP LEGEND ❤❤❤

[@noahcorin8382]

You don't use leverage to reduce your downside risk. You have to maintain margin requirements (% of investment) with the lender, and eventually pay back the lender. In that respect, risk is amplified, because you can lose more than the amount of your investment.

[@CryptoChef99]

How can we "retail" get into dark pools??

[@ScoreGuru123]

Jump in a puddle at night with your shades on 😎

[@kingkole6179]

The wolf of wall street is my favorite movie so I had to watch this video

[@sandro.music2024]

With my luck, If I was to invest in it, it will crash down and I lose all my money. 😂 😂

[@geofratiloiu5181]

Love your watch!!! Where did you buy it from?

[@AndreiJikh]

Thanks! My mom actually gave it to me for my birthday! Blancpain X Swatch

[@NoFluffRC]

Great video, thanks!

[@Daniel-xb4yb]

Sounds like bernie maddoffs fund

[@porkbelly1144]

Smart people are so fascinating

[@AndreiJikh]

I wonder what it's like... :P

[@CryptoChef99]

How did u find all of their financials but people like us can't use it

[@yourstruly5DA]

Commendable presentation and story-telling

[@MurderMostFowl]

My suspicion is that the model works by measuring market over reaction. Mathematically, there is a certain amount of acceleration in volume up or down, and they calculate what it should be versus the irrational exuberance or irrational pessimism actually present and they make their bets accordingly. In this way they “go to where the pick will be”. The reason that they have a limit to the money that they put into the market is that they don’t want any of their transactions to actually succeed in correcting it and cause self defeat.its not that they are some sort of benevolent force. It’s just that the model would simply fail.

[@FRANK_DYK]

Why do i feel like this could be another Bernie Madoff situation?

[@playdead09]

Huh I thought it was going to be about taxi medallions. Those things sky rocketed but I imagine they are down these days with ride share. Edit: just checked. Chicago medallions went for 350k in 2013. Today they are worth about 10k. 😢

[@TheDestineyAngel]

So they are the ones eating when my options expire worthless.

[@daviddominguez7545]

Talk about the Benner cycle chart and its predictions please.

[@NB_1707]

Bernie Madoff springs to mind…😂

[@jamesfrederick.]

i knew it

[@randybloomfield5090]

So it would expose the flaw in Fiat 🤔 love this one brother 👍

[@JonnyBetz]

This was awesome. 🤙🤙🔥🔥

[@Odysseus38]

Robinhood traders only heard 12.5x to 25x Leverage and stopped watching there 😂😂😂

[@sidneychatelain5042]

He tutors at suny stony brook on a wim. Jim Simmons is an awesome man. Imagine sitting with a math genius to go over your summer math problems. Then later finding out he is a billionaire math professor who doesn't even teach anymore. He just does whatever he feels like doing.

[@saba7856]

you are amazing

[@TheKadster]

Andrei this seems criminal. It reeks of criminality. It's a cheat code.

[@RedeemedInChrist96]

They probably just put all their money into Costco...not too complicated

[@EnostheChimp92]

Sheesh. Must be nice. I made $20 yesterday playing the small dip on a HUGE RUN

[@talhasiddiqi5993]

Great video. Enjoyed it. Learned a few new things.

[@AndreiJikh]

Glad to hear it!

[@carlu-lug]

What about Aladdin and the AI.

[@markzane7875]

but it is NOT open to new investors, so what's the point of this video?

[@arh1234]

Many of us haven't heard of it, and we're nosy and nerdy

[@shelbybyland4999]

The taxes on something like this sound good insane

[@MikeWalksWithJesus]

Good video, thanks