How an Exclusive Hedge Fund Turbocharged Its Retirement Plan
ByIt’s one of the sweetest employee perks in the hedge-fund world: a chance to invest in Medallion, the wildly profitable fund created by market legend James Simons.
Now, with deft legal maneuvers and a blessing from Washington, the firm Simons started is giving its employees an even richer opportunity — a tax-advantaged, fee-free ticket to one of the world’s top-performing hedge funds.
In a series of unusual moves, Renaissance Technologies abolished its 401(k) plan and won the government’s permission to put pieces of Medallion inside Roth IRAs. That means no taxes — ever — on the future earnings of a fund that averaged a 71.8 percent annual return, before fees, from 1994 through mid-2014…
How an Exclusive Hedge Fund Turbocharged Its Retirement Plan
