One of the world’s largest hedge funds has now been registered to operate in the Indian stock market as a foreign institutional investor (FII). This is good news—for two reasons.
Renaissance Technologies Llc. is one of the world’s mo-st interesting hedge funds. It is run by Jim Simons, once a code cracker for the US government and then a maths professor. In a November story, Bloomberg had described Simons as the “silver-bearded wizard of quantitative investing”. That fu-nds such as his are officially registering in India is good for the sophistication and depth of the local market.
Second, the Securities and Exchange Board of India had promised when it clamped down on participatory notes —offshore instruments used by hedge funds to buy and sell Indian stocks—that it would simplify the registration procedure for hedge funds if they signed up with it. That Renaissance has stepped through the door suggests that the regulator is keeping its promise.