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James H. Simons: Mathematics, Common Sense and Good Luck

San Francisco State University・56 minutes read

The speaker, Jim Simons, recounts his journey from mathematics to founding Renaissance Technologies and emphasizes the importance of luck, hard work, and collaboration in his success. Simons' career transitioned from academia to trading, culminating in the creation of a highly profitable model-based investment firm and a foundation supporting basic science research and education initiatives.

Insights

  • Jim Simons, a renowned mathematician and successful entrepreneur, transitioned from academia to founding Renaissance Technologies, a model-based hedge fund that became highly profitable. His journey showcases the intersection of mathematics and finance, emphasizing the role of luck and common sense in trading success.
  • The speaker's career trajectory involved significant shifts, from academia to entrepreneurship and back to mathematics, highlighting the importance of perseverance, embracing change, and maintaining confidence in one's abilities despite challenges or setbacks.
  • Collaborative partnerships and a commitment to originality, beauty, diversity, and integrity are central principles guiding the speaker's endeavors, influencing his success in mathematics, trading, and philanthropy. These values underscore the significance of teamwork, innovation, ethical conduct, and a holistic approach to problem-solving.

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  • Who founded Renaissance Technologies?

    Jim Simons

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Summary

00:00

"Math Society Presidents Discuss Luck and Success"

  • The event is part of the American Mathematical Society meeting of the western section and the Bay Area Science Festival.
  • Cosponsored by the American Math Society, the Bay Area Science Festival, and Mathematical Science Research Institute in Berkeley.
  • Michel Lapidus, the AMS associate secretary, introduces David Eisenbud, former president of the American Mathematical Society and current director of MSRI.
  • Jim Simons, a former president of the American Mathematical Society, will discuss luck.
  • Leonard Eisenbud, David's father, was involved in selecting Jim Simons as chair of the math department at Stony Brook.
  • Jim Simons, a PhD from Berkeley, won the AMS Veblen Prize in 1976 and is known for Chern-Simons theory.
  • In 1982, Jim founded Renaissance Technologies, using math to become one of the richest men on earth.
  • Jim recalls his childhood interest in math, his early job as a stock boy, and his decision to study mathematics at MIT.
  • Jim's journey to Buenos Aires on a motor scooter with friends led to important partnerships in his life.
  • Jim's investment in soybeans during his time at Berkeley showcases his early ventures into the financial market.

15:25

Speaker's Academic Journey: Thesis to Veblen Prize

  • The speaker recalls a time when they had to choose between writing a thesis or trading soybeans due to time constraints.
  • They decided to write a thesis and received positive feedback from their professor on the results.
  • The thesis focused on holonomy groups associated with connections on manifolds.
  • The speaker delved into a challenging problem related to holonomy groups being transitive on the unit sphere.
  • Despite warnings about the difficulty, the speaker successfully tackled the problem, leading to a satisfying thesis.
  • Following this success, the speaker interacted with Singer and eventually joined MIT as a Moore instructor.
  • Feeling a desire for change, the speaker ventured into starting a business in Colombia with friends.
  • They invested in the business and eventually decided to move to Colombia, leaving their job at MIT.
  • After a brief stint at an engineering company, the speaker returned to academia and focused on studying minimal varieties.
  • Their work on minimal varieties led to significant results, including winning the Veblen Prize and a publication encompassing their knowledge in the field.

29:57

From Mathematics to Trading: A Successful Transition

  • Temporary vs. permanent member distinction: Temporary members have contracts, while permanent members do not.
  • Temporary members may receive severance, possibly more generous than permanent members.
  • Despite losing his job, the speaker was not overly concerned due to his confidence in his academic abilities.
  • Offered a chair position at Stony Brook, the speaker found the opportunity exciting.
  • The speaker preferred being in a leadership role rather than being fired.
  • At Stony Brook, the speaker built a department and befriended physicist Frank Yang.
  • Initially clueless about physics, the speaker impressed Yang by recognizing a mathematical error in his work.
  • Collaborating with Chern led to the development of Chern-Simons invariants, now widely used in various fields.
  • The speaker's investment in trading with a skilled partner led to significant financial success.
  • Transitioning from mathematics to trading, the speaker's experience was both successful and emotionally tumultuous.

44:00

"From Gold Trading to Math Philanthropy"

  • The speaker recounts a situation where they instructed someone named Lenny to sell gold, which was initially valued at $810, but later dropped to $600 in one day.
  • They attribute their success in trading to a combination of luck and common sense, emphasizing the importance of understanding supply and demand.
  • The speaker transitioned from fundamental trading to using models, eventually founding Renaissance Technologies with a team of mathematicians and computer scientists.
  • The company, Renaissance Technologies, is entirely model-based, employing 300 people, including 90 PhDs, and has been highly profitable.
  • The success of the company is credited to the recruitment of smart individuals from various scientific fields, creating a collaborative and open atmosphere.
  • The foundation started by the speaker and their wife initially supported various causes but later focused solely on basic science, funding projects like autism research and microbial oceanography.
  • Following a personal tragedy, the speaker returned to mathematics, collaborating with a topologist to solve a problem in differential cohomology.
  • The speaker retired from Renaissance Technologies in 2009 but remains involved in the foundation, particularly supporting programs like Math for America in New York City.
  • The speaker outlines five guiding principles: originality, partnering with exceptional individuals, being guided by beauty, embracing diversity in partnerships, and valuing integrity.
  • The speaker emphasizes the importance of pursuing original ideas, partnering with exceptional individuals, appreciating beauty in various fields, and maintaining integrity in all endeavors.

01:00:02

"Value of Persistence in Pursuing Goals"

  • Persistence is valuable when pursuing worthwhile endeavors, even if they take time to come to fruition.
  • Hope for good luck is a final principle to consider.
  • Hedge funds have fluctuated in success over the years, with varying approaches and levels of competition.
  • Collaborative, goal-driven projects are a significant focus, though not the sole one.
  • The speaker finds collaborative, goal-driven projects enjoyable and effective for making progress.
  • The speaker's parents did not actively foster his mathematical knowledge during his childhood.
  • Reflecting on his professional life, the speaker does not regret any major decisions made.
  • The algorithms developed at Renaissance are proprietary and not intended for public sharing.
  • The speaker believes math education in America needs improvement to keep up with the increasing quantitative demands of the economy.
  • Efforts to enhance math education in the US were privately initiated through a charity poker tournament in New York.

01:17:13

Math and Science Teacher Program Expansion

  • The program in New York City aims to increase the number of math and science teachers involved, with 800 teachers currently and a plan to reach 1,000 next year, constituting 10% of the total math and science teachers in the city. Teachers in the program receive extra stipends, and similar initiatives are being implemented at the state level, with hopes for nationwide adoption, as the federal government is currently inactive in this area.
  • Bourbaki, a French initiative, sought to codify mathematics, reflecting the French preference for codifying all aspects of law and knowledge. While opinions on Bourbaki vary, it aimed to establish a structured approach to mathematics, contrasting with the common law tradition in the United States and England.
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