[hogFeast]

Just my 2c but I think RenTech's edge is hiring.

I think people assume that because you hire all these brilliant people that their domain knowledge is the reason you are hiring them (which usually plays into most people's understanding that what you need is the secret knowledge, and once you have your piece of paper then life is over, you have won).

An alternate hypothesis is that RenTech looks for people who have good domain knowledge AND have proven analytical ability translating that knowledge into practical results. Example: Nick Patterson is clearly a genius, he clearly has immense knowledge about stats/probability but he also seems like a very practical guy who has built a reputation on getting things done. It seems like RenTech hire smart people but also people who get things done.

I worked in fundamental equity research. Latency or tech is definitely an advantage but hiring/training processes can be very powerful too (it is often impossible for some firms to replicate at all). I have no idea if it is true here but given the focus RenTech place on hiring, it seems logical that is where their edge is.