A medallion fund is a sort of pooled funding fund that invests primarily in medallion futures contracts. These contracts are traded on the CME Group’s Globex platform and are based mostly on the S&P 500 index. Medallion funds supply buyers a technique to acquire publicity to the inventory market with out having to purchase particular person shares.
Medallion funds have been round for over 20 years and have an extended monitor file of success. The Renaissance Medallion Fund, based by James Simons, is without doubt one of the most well-known and profitable medallion funds on the earth. The fund has generated annualized returns of over 30% since its inception in 1988.
