Simons and algebraist James Ax started a hedge fund and named it Medallion in honor of the math awards that they had won. The Medallion fund used mathematical models to explore correlations from which they could profit.
Medallion’s strategy involves holding thousands of short-term positions, both long and short, at any given time. The fund makes high-frequency trades but has also held positions for up to one or two weeks.
The Medallion Fund has employed mathematical models to analyze and execute trades, many of them automated.These models are based on analyzing as much data as can be gathered, then looking for non-random movements to make predictions.