Key Takeaways
- • Robert Mercer is stepping down as co-chief executive and board member of Renaissance Technologies effective Jan. 1, 2018, according to letters to investors and staff sent on Thursday, November 2, 2017.
- • Renaissance, which manages more than $50 billion in assets, faces client backlash over Mercer's political activism and backing of Stephen K. Bannon.
- • The Baltimore police and firefighters retirement fund requested a refund of its $33 million Renaissance investment after being contacted by a local reporter, a withdrawal the New York Times described as a rounding error for the firm.
- • Mercer will remain involved in Renaissance's research arm and is selling his stake in Breitbart News to his daughters.
Summary
Robert Mercer, a billionaire investor and leading financial backer of conservative causes, is stepping down as co-chief executive of Renaissance Technologies, the $50 billion quantitative hedge fund, according to The New York Times. In letters to investors and Renaissance staff on Thursday morning, November 2, 2017, Mercer said he would step down as co-chief executive and as a board member on January 1, 2018. He said he would remain involved with the firm's research arm, which uses complex mathematical models to generate trading strategies.
The departure follows growing discomfort among some clients with Mercer's political activism, including protests aimed at university endowments, foundations and pension funds invested in Renaissance. The retirement fund for Baltimore's police and firefighters asked that all $33 million it had invested in the firm be refunded, according to David A. Randall, the fund's deputy executive director. The pension's directors acted after a local reporter asked whether the fund was bothered by Mercer's political activities, and convened an emergency conference call to avoid bad publicity. The Times noted the withdrawal was small relative to Renaissance's asset base but signaled unease inside and outside the firm.
The Times reported that the unease centers on Mercer's backing of Stephen K. Bannon, the former White House adviser who has returned to running Breitbart News. In his letter to employees, Mercer sought to distance himself from Bannon, whom the Times described as tied to a divisive outlet and hub for nationalist and far-right activism. Mercer, 71, said he was selling his investment in Breitbart to his daughters, who are also active in conservative politics. Renaissance's founder, James Simons, is a prominent Democratic booster who supported Hillary Clinton's presidential campaign, the Times noted.
Publisher coverage, including reports attributed to Bloomberg-syndicated and other outlets, characterized Mercer as a major backer of President Donald Trump and said he is not retiring from the firm, which relies on computer models to make its trades. Mercer has argued he was wrongly portrayed in the controversy, according to coverage of his statement.
The departure follows growing discomfort among some clients with Mercer's political activism, including protests aimed at university endowments, foundations and pension funds invested in Renaissance. The retirement fund for Baltimore's police and firefighters asked that all $33 million it had invested in the firm be refunded, according to David A. Randall, the fund's deputy executive director. The pension's directors acted after a local reporter asked whether the fund was bothered by Mercer's political activities, and convened an emergency conference call to avoid bad publicity. The Times noted the withdrawal was small relative to Renaissance's asset base but signaled unease inside and outside the firm.
The Times reported that the unease centers on Mercer's backing of Stephen K. Bannon, the former White House adviser who has returned to running Breitbart News. In his letter to employees, Mercer sought to distance himself from Bannon, whom the Times described as tied to a divisive outlet and hub for nationalist and far-right activism. Mercer, 71, said he was selling his investment in Breitbart to his daughters, who are also active in conservative politics. Renaissance's founder, James Simons, is a prominent Democratic booster who supported Hillary Clinton's presidential campaign, the Times noted.
Publisher coverage, including reports attributed to Bloomberg-syndicated and other outlets, characterized Mercer as a major backer of President Donald Trump and said he is not retiring from the firm, which relies on computer models to make its trades. Mercer has argued he was wrongly portrayed in the controversy, according to coverage of his statement.
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