Chad Urdy

“The options also were a way of shifting enormous risk from Renaissance to the banks. Because the lenders technically owned the underlying securities in the basket-options transactions, the most Medallion could lose in the event of a sudden collapse was the premium it had paid for the options and the collateral held by the banks. That amounted to several hundred million dollars. By contrast, the banks faced billions of dollars of potential losses if Medallion were to experience deep troubles. In the words of a banker involved in the lending arrangement, the options allowed Medallion to “ring-fence” its stock portfolios, protecting other parts of the firm, including Laufer’s still-thriving futures trading, and ensuring Renaissance’s survival in the event something unforeseen took place. One staffer was so shocked by the terms of the financing that he shifted most of his life savings into Medallion, realizing the most he could lose was about 20 percent of his money.”
― Gregory Zuckerman, The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution

“When the Axcom team started testing the approach, they quickly began to see improved results. The firm began incorporating higher dimensional kernel regression approaches, which seemed to work best for trending models, or those predicting how long certain investments would keep moving in a trend.”
― Gregory Zuckerman, The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution

“Elsewhere, statisticians were using similar approaches—called kernel methods—to analyze patterns in data sets. Back on Long Island, Henry Laufer was working on similar machine-learning tactics in his own research and was set to share it with Simons and others. Carmona wasn’t aware of this work. He was simply proposing using sophisticated algorithms to give Ax and Straus the framework to identify patterns in current prices that seemed similar to those in the past.”
― Gregory Zuckerman, The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution

“America feels itself to be humanity in miniature. When in this crucial time the international leadership passes to America, the great reason for hope is that this country has a national experience of uniting racial and cultural diversities and a national theory, if not a consistent practice, of freedom and equality for all. What America is constantly reaching for is democracy at home and abroad. The main trend in its history is the gradual realization of the American Creed.

In this sense the Negro problem is not only America's greatest failure but also America's incomparably great opportunity for the future.”
― Gunnar Myrdal, An American Dilemma: The Negro Problem and Modern Democracy