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Renaissance Hedge Fund Ends No-Fee Investment Perk After IRS Complaints

  • Hedge fund’s workers invested in the lucrative fund for free
  • IRS claimed no-fee Medallion investments should be taxed
James Simons, chairman and founder of Renaissance Technologies.

James Simons, chairman and founder of Renaissance Technologies.

Photographer: Amanda Gordon/Bloomberg

Renaissance Technologies is ending one of the hedge fund industry’s most coveted benefits: the chance for its workers to invest their retirement nest egg in its famously profitable employee-only fund fee-free, after the practice caught the attention of the Internal Revenue Service.

The firm cashed out investments in its Medallion fund that employees had made through certain tax-advantaged retirement accounts and private foundations, according to a regulatory filing