2. Simmons' method does not involve hedging, but mostly makes short-term directional forecasts, trading multiple varieties at the same time, and profiting from a large number of transactions in the short term. Specific to the loss of each transaction, because the position will be closed in a short time, the loss will not be great; After thousands of transactions, as long as there are more profitable transactions than losses, the overall result is profit.
3. Simmons investment method skillfully applies mathematical theory to stock investment. There are three main secrets of success: designing quantitative investment management models for different markets; Take computer operation as the leading factor and eliminate human interference; Conduct short-term transactions in various markets around the world. The greatest significance of this transaction mode is to minimize the subjective impact on the transaction, and then through a series of mathematical model calculations, reduce the system risk and find the "depression" of value. Simmons himself spoke highly of short-term arbitrage and intraday trading.
4. James Simmons, a master of quantitative investment and mathematician, is the head of Yiwen Yifuxing Technology Company, a hedge fund. From 1988 to 2008, the average annual net return rate of the Medalian Fund he managed was 35.6%, which was 10 percentage point higher than that of investment masters such as Soros and more than 20 percentage points higher than that of the Standard & Poor's 500 Index.
The importance of investment
The word investment has several related meanings in finance and economy. It involves the accumulation of property in order to gain benefits in the future. Technically, this word means "the act of putting something in another place". From the financial point of view, compared with speculation, the investment period is longer, and it is more inclined to obtain some sustained and stable cash flow income in a certain period of time in the future, which is the accumulation of future income.