Hedge funds are all over this including James Simons of Renaissance Technologies Corp. who earned a staggering $1.5 billion in 2005. Simons' Medallion hedge fund returned 29.5 percent net in 2005. That was all the more remarkable given the $5.3 billion fund�s 5 percent management fee and 44 percent performance fee. (The gross return was nearly 60 percent.) Even so, Medallion fell short of its roughly 34 percent annualized net return since its 1988 inception.