Risk Warning

Important information about investment risks and considerations you should understand before investing.

Last updated: January 1, 2025

General Investment Risks

All investments carry risk and may result in partial or total loss of capital. Past performance does not guarantee future results.

Investment in financial instruments involves substantial risk and is not suitable for all investors. The value of investments can go down as well as up, and you may not get back the amount you originally invested. Market conditions, economic factors, and company-specific events can significantly impact investment performance.

Quantitative Strategy Risks

  • Model Risk: Mathematical models may not accurately predict market behavior or may become obsolete due to changing market conditions.
  • Data Risk: Reliance on historical data and statistical analysis may not reflect future market performance or unprecedented market events.
  • Technology Risk: System failures, software bugs, or cyber attacks could disrupt trading operations and result in losses.
  • Liquidity Risk: Difficulty in buying or selling positions quickly may result in unfavorable prices or inability to exit positions.
  • Leverage Risk: Use of borrowed capital can amplify both gains and losses, potentially resulting in losses exceeding initial investment.

Market and Economic Risks

  • Market Volatility: Financial markets can experience significant price fluctuations due to various economic, political, and social factors.
  • Interest Rate Risk: Changes in interest rates can affect the value of fixed-income securities and other financial instruments.
  • Currency Risk: Fluctuations in exchange rates can impact the value of international investments and multi-currency portfolios.
  • Credit Risk: Risk of default by issuers of bonds, loans, or other debt instruments in the investment portfolio.
  • Regulatory Risk: Changes in laws, regulations, or government policies may adversely affect investment performance.

Operational and Business Risks

  • Counterparty Risk: Risk that trading partners, brokers, or other counterparties may fail to meet their obligations.
  • Concentration Risk: Over-concentration in specific assets, sectors, or geographic regions may increase portfolio vulnerability.
  • Key Personnel Risk: Dependence on key individuals whose departure could negatively impact investment performance.
  • Compliance Risk: Failure to comply with applicable laws and regulations may result in penalties, sanctions, or reputational damage.

Specific Investment Warnings

High-Frequency Trading

Involves rapid execution of large numbers of transactions and may be subject to technology failures, market disruptions, and regulatory changes.

Alternative Assets

Investments in cryptocurrencies, commodities, and other alternative assets are highly volatile and may experience extreme price movements.

International Exposure

Global investments are subject to additional risks including political instability, currency fluctuations, and different regulatory environments.

Investment Suitability

Who Should Invest

Our investment strategies are designed for sophisticated investors who understand and can bear the risks associated with quantitative trading and alternative investments.

  • Institutional investors with substantial assets under management
  • High net worth individuals with diversified investment portfolios
  • Investors with long-term investment horizons and risk tolerance
  • Those who understand quantitative investment strategies and their associated risks

Important Disclaimers

  • This information is for educational purposes only and does not constitute investment advice or recommendations.
  • Past performance is not indicative of future results and no guarantee of future performance is made.
  • All investments involve risk and potential loss of principal, and no investment strategy can guarantee profits.
  • Investors should conduct their own research and consult with qualified financial advisors before making investment decisions.
  • Renaissance Technologies of Canada Ltd. is not responsible for any investment decisions made based on this information.
  • This document may contain forward-looking statements that involve risks and uncertainties.

Regulatory Information

Renaissance Technologies of Canada Ltd. is registered with the Securities and Exchange Commission (SEC) as an investment adviser. This registration does not imply any level of skill or training and does not constitute an endorsement by the SEC.

SEC Registration:
Investment Adviser Registration Depository (IARD)
Jurisdiction:
United States of America
Compliance:
Subject to SEC oversight and examination