Ben Gilbert: evaluation

Transcript context

…Now why did we do this? I’m going to talk about one reason in a minute. One reason is super obvious. The Medallion fund is now at $5 billion in assets under management that they’re trading. Even in the equities market, they are now hitting up against slippage. If they want to maintain this crazy, crazy performance, they just can’t get that much bigger. This is the problem that Warren Buffett talks about all the time, and why he has to basically just increase his position in Apple rather than going and buying the next great family-owned business. The things that move the needle for them are so big, that that’s really all they can do. And when you are big, you’re going to move any market that you enter into. The strategy that RenTech is employing right now, they’re just deeming doesn’t work at north of $5 billion. In 2003, they start kicking all the outside investors out of Medallion. But clearly there are still lots of institutional demand to invest with Renaissance. What do they do?…

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