A medallion fund is a type of pooled investment fund that invests primarily in medallion futures contracts. These contracts are traded on the CME Group’s Globex platform and are based on the S&P 500 index. Medallion funds offer investors a way to gain exposure to the stock market without having to buy individual stocks.
Medallion funds have been around for over 20 years and have a long track record of success. The Renaissance Medallion Fund, founded by James Simons, is one of the most well-known and successful medallion funds in the world. The fund has generated annualized returns of over 30% since its inception in 1988.