Renaissance Technology Update
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According to people familiar with the matter, Renaissance Technologies executives and their spouses have agreed to pay approximately $7 billion in back-up taxes and fines to federal authorities for the transaction of this quantitative hedge fund in the largest tax settlement in U.S. history.
Jim Simons, mathematician and former Cold War codebreaker, he founded fund According to the British “Financial Times”, a letter from the group to investors stated that about 40 years ago, they would pay an additional US$670 million.
The settlement ended the long-term dispute with the company’s Medallion Fund’s transactions between 2005 and 2015, when several of the company’s executives converted short-term capital gains into long-term profits, and long-term profits were taxed at a much lower rate.
Renaissance is also included in its senior management Robert Mercer, Who funded the far-right news site Breitbart and supported some Republican political candidates including former US President Donald Trump.
The Wall Street Journal first reported the news of the settlement.