"It's just what the model says"

Added: 2026-05-15

[00:00:00]Renaissance is 100% model-driven.

[00:00:01][music] No trade is ever made because someone walks into the trading room and says, "Hey, let's buy IBM. It's a sure winner." Or anything like that. Uh you know, we got too [music] much uh Google. We got to short got to Nobody does that.

[00:00:18]It may be that we had too much Google, but nonetheless, uh he might have been right. But uh it's just what the model says. And that religious sticking to the model [music] is the only way you can run such a business because you cannot simulate that guy who [music] walked in and said, "Hey, let's Google's too high. Let's sell it." How can you simulate that? [music] You don't know what might have happened.

[00:00:41]But you can simulate a you can come up [music] with a model or a new predictor, and you can simulate it in the past. See how did it do.

[00:00:50]So uh you have to stick to it.