Renaissance Technologies

5927.556 - 5951.43 Ben Gilbert

Negative Sharpe ratios are worse because that means you're underperforming the risk-free rate. High Sharpe ratios are good because it means that you're producing lots of returns and your variance or your standard deviation or your sort of risk is low. So in 1990, they had a sharp of 2.0, which was twice that of the S&P 500 benchmark. Awesome. Yep. Good. 1995 to 2000, sharp ratio of 2.5.