Renaissance Technologies owns 7.39% and is the largest institutional holder. Here is their story:
Founded by mathematics professor Jim Simons in 1982, Renaissance Technologies boasts one of the best track records in investment history. In the 1990s, the flagship Medallion fund earned record-breaking cumulative returns of 2,478%. And more recently, the firm's 2009 performance gave it the top ranking for large fund performance.
RenTec is a quant shop, which means that the firm uses computer models to figure out which stocks it should add to its massive $38 billion equity portfolio. Rather than looking for value stories, the firm's models hone in on trends in price action and statistical relationships between securities. That quantitative bent requires a serious brain trust, and Renaissance has it.
Of the firm's 150 people, around half hold PhDs in scientific fields -- physicists and statisticians aren't exactly the demographics you'd find at most Wall Street firms. But that focus on hiring the smartest unconventional thinkers has helped fuel some of the biggest gains in the industry.
dbt: I think you have a typo on RenTec cumulative returns. I think you meant cumulative 24.78%, which is still extraordinary. By the way, you need to also mention that Renaissance increased its position in CLCT within the past month as well.
Thanks for this insight. I am liking more and more what we are seeing. I just hope the CLCT CEO doesn't say anothing negative about future quarters after this one to be reported on.