How did the ratio perform?

Sources:

The Sharpe Ratio is a critical measure for evaluating a fund's performance relative to its risk. It essentially quantifies the additional return an investor receives for taking on additional risk. A higher Sharpe Ratio indicates better risk-adjusted performance.

In the case of Renaissance Technologies, from 1990 to 2000, their Sharpe Ratio was significantly higher than the S&P 500. Specifically, their Sharpe Ratio was 2.0 in 1990, twice that of the S&P 500 benchmark. From 1995 to 2000, this ratio increased to 2.5, signifying their ability to achieve high returns while maintaining low risk 1.

For detailed insights, you can refer to the episode on .

Sharp Ratio Insights

Ben and David delve into the importance of the sharp ratio, highlighting how it measures a fund's performance relative to risk. They discuss the significance of uncorrelated returns and how achieving a high sharp ratio can be the ultimate goal in money management.
Acquired
Renaissance Technologies
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