On May 10, 2024 Eastern Time, Jim Simons, a legendary figure who made profound marks in both mathematics and finance, passed away in New York at the age of 86. Simons was famous for his contributions to geometry and topology as well as his tremendous success on Wall Street. His net worth was estimated to be 31.4 billion dollars, making him one of the richest individuals in the world, ranked 51st.

Jim Simons was born on April 25, 1938, in Massachusetts, and became widely known for his outstanding achievements in the field of mathematics, notably in the areas of geometry and topology. He earned his PhD in mathematics from the University of California, Berkeley, at just 23 years of age. Afterwards, he taught mathematics at MIT and Harvard University and worked at the Institute for Defense Analyses (IDA), engaging in research on wartime code-breaking, but was dismissed due to his opposition to the Vietnam War. He also served as the head of the mathematics department at the Stony Brook University in New York State.

In 1974, Simons, together with Shiing-Shen Chern, proposed the Chern-Simons gauge theory, merging geometry, topology with quantum field theory, having a profound influence on later theoretical physics, especially in the fields of quantum field theory and string theory. His contributions earned him the highest honor in the American mathematical community—the Veblen Prize in Geometry, awarded by the American Mathematical Society in 1976.

At the pinnacle of his academic success, Simons made a decision to leave pure mathematical research to focus on a new field: financial investment. In 1978, he founded a small investment firm. With a team of mathematicians and physicists, they used complex mathematical models to analyze and predict price fluctuations of currencies and commodities. This company later evolved into the renowned Renaissance Technologies, focusing on using advanced computational technology to acquire market information and find non-random patterns in the markets.

Simons and his team of experts proved that market trades—from commodities, currencies, stocks to bonds—could be predicted scientifically and mathematically, just like solving calculus and partial differential equations. This quantitative investment approach dramatically changed the trading patterns on Wall Street, and Renaissance Technologies has been one of the largest hedge funds on Wall Street for many years. Notably, the Medallion Fund established by the company has achieved an average annual return rate of 66.1% since its inception, outperforming many other famous investors.

After leaving academia, Jim Simons has continued to influence and propel scientific advancements with his financial and investment achievements.

The Simons Foundation, founded by the Simons couple in 1994, became a significant private funding source for basic scientific research in America. With a spirit of generous donations, the foundation is a major supporter of MIT and UC Berkeley, and it is also the largest donor to Stony Brook University, which has special ties to the couple—Simons once taught there, and Marilyn is an alumna. In 2023, the foundation made a record-breaking donation of 500 million dollars to Stony Brook University, the largest single donation ever made to an institute of higher learning in the United States, with no restrictions on its use.

In 2016, with substantial support from the foundation, an institute named "Iron Research Institute" was established. Drawing inspiration from the success stories of the Renaissance period, this institution is dedicated to applying advanced algorithms across various fields of basic science research, such as computational biology, astrophysics, quantum mechanics, and neuroscience, with Simons himself personally participating in scientific research endeavors. Merely two years after its establishment, the Iron Research Institute developed numerous analytical programs and algorithms and published over 280 academic papers. As long as the U.S. tax law remains stable, Simons' considerable wealth will ensure the Iron Research Institute can operate long-term with an annual budget of nearly one hundred million dollars.

During our on-site inspection of the Iron Research Institute, our impressions were often starkly different from those of traditional laboratories. During our visit, instead of exploring bustling labs led by star professors, as usual, we were directly led into a computer room. Apart from the soft hissing sound of the central air conditioning system, the room was silent. I had only seen so-called "scientific computing cores" in movies, but now I was witnessing a real scientific computing center. Department head Nick Carriero guided us through the neatly arranged servers and showed us an empty rack awaiting a quantum physicist's arrival.

The Iron Research Institute is located in lower Manhattan, New York, and has focused on research in the field of computer science since its opening in September 2017. It is specialized in using algorithms to analyze vast amounts of scientific data and develop applicable solutions. Over the recent decades, university researchers have become highly adept at collecting digital information, such as sequencing data for trillions of base pairs in the human genome and optical measurement data from billions of stars. Although the scientists collecting this data are rarely professional programmers, relying instead on code written by other graduate students to analyze the data, the goal of the Iron Research Institute is to provide custom-designed algorithmic tools for leading researchers worldwide, enabling them to uncover the most subtle patterns within chaotic data.

Simons is highly regarded in both the mathematical and financial worlds—not only is he a famous mathematician but also the founder of one of the world's largest hedge funds, Renaissance Technologies. In 2017, with nominal earnings of 1.6 billion dollars, Simons topped his industry, and astonishingly, this record-breaking income did not come from daily diligent work but rather, Simons had already retired and his primary income stemmed from his company's stock ownership.

While Renaissance's trading strategies are shrouded in secrecy, Simons revealed the golden rules behind his successful investments: he never interfered with the established models during trading. Even amidst constant market changes, he maintained trading discipline guided by these models, patiently waiting for the optimal trading opportunity. Abiding by these principles, Simons established Renaissance, creating a highly efficient working model and employing a talented team of researchers dedicated to uncovering hidden regularities in stock and financial instrument data, which ultimately became the foundation of his success.

Meanwhile, Simons applied the same spirit and approach to the Flatiron Institute, a non-profit organization dedicated to selflessly expanding knowledge and promoting human scientific progress. Currently, the institute hosts several main divisions—including computational biology, computational astronomy, and computational quantum physics—continually expanding its areas of focus, planning, and ultimately launching additional centers for computational mathematics and computational neuroscience.

The invaluable Flatiron Institute is located across the street from the Simons Foundation, and Simons continues to drive scientific research from his office at the top floor of the foundation building. His spouse Marilyn is also actively involved in the foundation and the institute among other matters. Simons, known for his intractable smoking habit, often puffs smoke even in private meeting rooms and insists on accepting all consequences of smoking. Hanging conspicuously in a corner of the office is a framed defense slide of the Chern-Simons theory, witnessing his collaboration with mathematician Shiing-Shen Chern. This theorem focuses on the subtle properties of three-dimensional spaces, becoming a cornerstone of differential topology, and providing a theoretical foundation for the development of string theory, quantum computing, and condensed matter physics. Although Simons did not foresee its wide application in physics, his research was motivated purely by his love for mathematics.

In the present, mathematical research is still seen as a domain for the young, who typically make their most important contributions before middle age. Despite advancing into the autumn of his years, Simons remains diligently engaged in the field of mathematics. In 2003, suffering the loss of his son Nick to a drowning incident (his other son Paul died in a bicycle accident in 1996), Simons chose to return to the field of mathematics in search of solace.

Simons is well aware of the allure of mathematical problems: "Once you start to seriously think about a math problem, you will find yourself engrossed in your own world." He contributed a highly regarded paper titled "Axiomatic Characterization of Ordinary Differential Cohomology," and posed a question to me: Can a complex structure exist on the six-dimensional sphere? This question is complex and ancient, with no answer to date. Marilyn mentioned that when her husband begins grinding his jaw and his gaze goes distant, that is when he is immersed in a mathematical conundrum.

On the success of the Flatiron Institute: According to Simons, the key to success in research during the Renaissance period lay in advanced computer architectures. University programming is often unstable due to staff turnover, resulting in many programs becoming poorly maintained. Therefore, the institute hired two top programmers to maintain its operations, Carretero and Ian Fisk, the former having developed high-performance computing software and the latter having worked at the European Organization for Nuclear Research (CERN). With their exceptional skills and high salaries, they ensure the precision of computational tasks. Although this is not apparent to the outside, it is the computational focus of the institute that Simons emphasizes.

Features and Impact of the Ironing Research Institute: The institute does not conduct independent experiments but collaborates with university laboratories to acquire new data. Its algorithms and computational models are designed to reveal the rich information behind the data: speculating new planet positions, identifying genes related to genetic mutations, etc. The institute's internal environment, unlike a lab, resembles a typical office space. Despite having immense data processing capabilities—equivalent to six thousand high-end laptops—the institute does not take pride in this advantage. Kai Lero admits that their capacity might not compare with the resources of Amazon or Google. However, due to the small staff size, each scientist receives ample computing power support, and the top-notch "algorithm guidance" and "software guidance" help researchers focus on breaking scientific frontiers.

Driven by the belief that the powerful potential of algorithms can achieve disruptive success in the scientific community, Simons decided to make a bold attempt. To bring his Ironing Research Institute on par with the renowned Institute for Advanced Study in Princeton, he has hired 91 research staff over the past two years and plans to recruit more than 200 research talents. Simons is generous with funding: "I initially projected an annual investment of 75 million dollars, but now think the budget could increase moderately to about 80 million dollars." According to Forbes, Simons' personal net worth has reached 18.5 billion dollars, thus financially supporting the Ironing Research Institute is easy for him. "I had great fun with Renaissance Technologies," he shared, "and I am very pleased with the establishment of the institute now."

The emergence of the Ironing Research Institute is a significant marker in the trend of private funding for fundamental scientific research. In the United States, basic science research has traditionally relied on college and government funding, but private institutions often operate more efficiently and concentrate resources in areas of interest to investors, also possessing stronger financial power. Since the 1990s, with Silicon Valley producing billionaires continuously, private research institutions have sprung up across the U.S.A. For example, in 1997, Larry Ellison, co-founder of Oracle, established the Ellison Medical Foundation focusing on research in anti-aging biology; in 2003, Paul Allen, co-founder of Microsoft, created the Allen Institute for Brain Science in Seattle; by 2010, Eric Schmidt, Executive Chairman of Google, set up the Schmidt Ocean Institute in Palo Alto. These institutions have seen rapid development in their respective research fields, partly because they provide scientists with alternatives to break free from the traditional scientific research system—like the Allen Institute, employing automated microscopes and other high-tech equipment to accelerate experimentation significantly.

However, the existence of private foundations also brings some problems, the largest controversy being that wealthy donors might preferentially invest in specific research areas based on personal preferences. Under current U.S. tax law, foundations enjoy tax-exempt status; this means that the funds that might have entered government finance end up in privately-controlled research projects. These generous billionaires are only accountable to themselves, and the board members of private research institutions are often selected by the founders to ensure the continuity of research directions aligning with the founders' wishes, even after their death. Stanford University's political science professor, "Philanthropy Expert Rob Reich told me: "Private foundations are actually a Platonic power structure, lacking accountability mechanisms, their operation processes are not transparent enough, mainly directed by the personal will of the donors, and enjoy substantial tax benefits. In a democratic society, such an organization form that is actually highly individualistic being held in such high regard is, indeed, a great wonder."

Simmons, ranked 25th on the American wealth list, has easily become the country's largest private funder of basic science. Through his domestic nonprofit organization, Simmons has injected funds into the Flatiron Institute, which boasts nearly three billion dollars in disposable assets. Additionally, Simmons founded an even larger charitable organization - the Simons Foundation (International) in Bermuda. According to investigations, this foundation possesses about eight billion dollars in assets that have not yet been subjected to any taxes. This immense overseas trust's origins are fascinating: prior to founding the "Renaissance" investment firm around the late 1970s, a friend of his parents established this trust for him and invested one hundred thousand dollars in it. Simmons himself expressed that at the time, the friend "really liked me."

Edward McCaffery, a law professor and tax policy expert at the University of Southern California, expresses via email that "people like Simmons, Bill Gates and Warren Buffett who may give all or most of their wealth to charities of their choice, while they and their families enjoy immense privileges, are almost not required to pay corresponding taxes. The charitable activities they engage in reflect personal values and do not necessarily have a positive impact on taxpayers at large." Had taxes been levied on the eight billion dollars in assets, the tax money could have been used to establish more educational institutions at the federal level.

Regarding his wealth accumulation, Simmons has deeper contemplations beyond the issue of tax avoidance. He believes that the distribution of wealth in the United States is severely imbalanced and thinks that society might be improved if the wealth disparity were not so pronounced. However, he also sees a positive side to this imbalance, "As a beneficiary of such circumstances, I think it's good for philanthropy and scientific research; put simply, having more resources allows you to do things that others cannot. Nearly all historical scientific progress has relied on philanthropic donations, and even Galileo had patrons."

Simmons himself is both a benefactor and a scientist. One July day, as scientists from the Flatiron Institute reported their latest progress to him in the conference room, Simmons did not hesitate to offer praise and encouragement for their work. After three astronomers presented their advancements in supernovae, gravitational waves, and dwarf galaxy research, Simmons was surprised to learn that they could not ascertain the accuracy of the most complex models. Two computer programs designed to solve the same problem had produced entirely different results, and he objected: "If they are based on the same physical principles and should follow the same logic in their execution, then the results should be consistent." Although Simmons developed a keen interest in programming, he is not a programmer himself.

In the process of trying to understand the world with mathematical precision, an astronomer pointed out that there is a discrepancy between the ideal and the actual situation. While theoretical algorithms run flawlessly in the perfect world of mathematics, in practical applications, one must continuously approximate the valuations of basic equations. Moreover, due to the diversity of algorithms, these valuations have differences.

Simons, a figure deeply influenced by the educational world of mathematics, appeared restless as he listened to a series of scientists’ presentations. First, astronomers made way for a group of biologists. Professor Olga Troyanskaya of Princeton University, a geneticist and computer scientist of Russian origin, shared the algorithm she developed. This algorithm can predict the impacts of specific mutations within cells and aims to provide a framework for individualized DNA medical treatments.

Then, Dimitri Chklovskii, a neuroscientist recruited by Simons from the Howard Hughes Medical Institute, discussed his work on mapping the neural networks of a type of Italian bee. By studying the brain of this simple organism, we can gain insights into the complex computational processes of the human brain.

Applied mathematician Alex Barnett introduced several tools his team developed to study neural processes, especially a program called MountainSort. It uses advanced algorithms to predict the thought processes of mice before they move, potentially offering insights into how the brain regulates behavior.

MountainSort has been made freely available to laboratories worldwide by the Flatiron Institute, and with its outstanding performance, it has achieved a hundredfold increase in the speed of data analysis, earning widespread praise in the industry. The goal of the Flatiron Institute is clear, to rapidly promote and release programming projects to facilitate the advancement of scientific research.

In less than two years, the scientists at the Flatiron Institute have written or co-authored more than 280 academic papers, demonstrating their diligence and productivity. Simons himself believes that scientists should not be constrained by commands; he prefers to hire outstanding and motivated researchers and let them explore freely.

Although Simons himself has a preference for discussing astronomy as its logic is more comprehensible to him, he is equally adept at exploring the field of biology. Whether on a theoretical or practical level, Simons exhibits a strong passion for solving complex problems.

Simons has, through sustained effort, built a unique "algorithm" in his career, aimed at how to manage a group of highly talented researchers in a pleasing yet creativity-stimulating manner. He says, "I have a passion for discovering talents, and my management style is designed to identify those outstanding individuals and enable them to thrive in challenges." During his leadership at Renaissance, he was responsible for adjusting and optimizing numerous trading algorithms. At the Flatiron Institute, he occasionally also provides important suggestions for the research work. For example, when Olga Troyanskaya was researching the connection between genes and autism, Simons proposed adjusting her developed algorithm to improve the efficiency of information mapping, a suggestion that later proved to be successful. Although Troyanskaya wanted to list Simons as a co-author of the paper, Simons humbly declined, choosing to remain behind the scenes.

Simons will reinvest the funds earned from algorithms into scientific research. In the 1990s, Jim and Marilyn Simons established the Simons Foundation worth $2.5 billion. Upon his retirement, Simons devoted his energy to enhancing the foundation's influence in the scientific community. In 2012, he and Marilyn organized an informal meeting in New York State, where he applied his own technique—listening to insightful opinions and acting on intuition. Simons emphasized, "Taste in science is crucial; it can help one discern which questions are worth exploring and which are questions people simply do not care about the answers to—this is about taste." As a legendary mathematician, Simons convened the world's top scientists with the reputation of an intellectual during the meeting.

The meeting was chaired by Nobel laureate David Baltimore, and renowned geneticist Eric Lander, as well as many physicists, mathematicians, biologists, and astronomers participated. This gathering provided an opportunity to showcase novel and ambitious research projects to potential funders. It also evoked memories of pre-World War II America, when private institutions such as Rockefeller University and the Institute for Advanced Study at Princeton, funded by commercial heirs, were thriving. However, by the 1950s, government agencies like the National Institutes of Health (NIH) and the National Science Foundation (NSF) became the primary sources of funding for most scientific research in the United States. Despite the government being the main funder of scientific research for half a century, at the turn of the century, with the slow reduction of federal research funding, the support of Silicon Valley billionaires, representing philanthropy, began to emerge once again.

Since the end of World War II, the year 2015 witnessed for the first time the influence of private funding in the field of basic scientific research surpassing traditional government funding. For example, government funding agencies like the National Science Foundation favor supporting steadily growing research projects, hence successful researchers are more likely to get support. Statistically, scientists receiving funding from the NIH for the first time have an average age of 43. Government agencies tend to be conservative towards innovative scientific research projects that are riskier.

In contrast, at private gatherings like those hosted by Simons, attendees are encouraged to propose long-term projects, even if these projects will not yield immediate results. Duke University mathematics professor Ingrid Daubechies once suggested at a meeting that there should be a research institution focusing on the massive amount of existing scientific data. She was well aware of Simons's wealth accumulation process and the current state of the vast data in the scientific community. She proposed the establishment of a research center aimed at helping researchers discover valuable datasets and construct a superior and comprehensible data analysis framework.

Simons himself was deeply aware that scientific researchers are currently being overwhelmed by big data. Various cutting-edge technologies such as optogenetics, infrared imaging, gravitational wave detectors, and radio telescopes are constantly collecting rich data streams from living organisms and the universe. Researchers can collect up to several hundred terabytes of data in a single experiment. Daubechies believes that despite the rapid progress in data collection technology, there hasn't been much investment in improving data computation and analysis. This view resonated strongly with Simons.

Initially, Tobes had proposed setting up such a new research center at Duke University, but the Simons couple preferred to place it next to their foundation headquarters in Manhattan. Simons hoped that the new research institute -- the Flatiron Institute -- would foster a creative atmosphere like Bell Labs. Bell Labs, founded by communications giant Bell Company, nurtured eight Nobel laureates and the significant invention of the transistor during its heyday.

When creating his company -- "Renaissance Technologies," Simons emphasized creating a relaxed and enjoyable work environment, encouraging employees to explore independently, and establishing frequent academic lectures and team-building activities. Peter Brown, the current CEO of "Renaissance," indicates that working for Simons makes one feel the need to strive for results, as Simons always goes out of his way to solve problems for the team.

Sharing and communication are at the core of the "Renaissance" company culture. Simons longs for information to flow freely like water at the Flatiron Institute. Therefore, public spaces such as corridors, coffee areas, and lounges are very conveniently equipped with blackboards to encourage researchers to discuss problems and exchange ideas at any time. It is in such an environment that more efficient wave sorting algorithms in the field of stellar classification have been born and broken through.

On a June day, I happened to pass a blackboard recording the equations of David Spergel, head of the Cosmology Department. These equations describe not only the galactic winds produced by supernova explosions but also oceanic fluctuations and even the fluid dynamics phenomena within cells.

The Flatiron Institute is highly regarded for its free research environment; its researchers do not need to engage in teaching or apply for funding, which is extremely rare in academia. These activities, which typically require a lot of time, are not an issue at the Flatiron Institute. However, almost all of the senior employees of the Flatiron research come from nearby universities, especially those around New York, which has drawn some criticism.

Spergel has expressed his opinion on this criticism: "People think we have so many resources and are trying to dominate the global academic world." An unhappy competitor even complained to Spergel in an email, calling the Flatiron Institute "a thousand-pound gorilla," as nearly every scientist they attempted to recruit had a job offer from Flatiron.

Though the Flatiron Institute is excellent in computational science, some researchers have pointed out that strong computational capability also requires support from experimental science, which the Flatiron Institute does not provide. They argue in emails: "No matter how advanced the computational models are, their predictive accuracy can only match the quality of experimental data."

Simons is willing to invest more funds than other top academic institutions, which also makes some people feel uneasy. For example, Ray Madoff, head of the forum for charity and public affairs at Boston College Law School, commented: "This confirms the suspicions many have about the rich always playing by their own rules. The wealthy can always do what they want, while others can only be bystanders in the world they construct." In the past, the establishment of private foundations required legislation by Congress, reflecting public concerns about the potential harm these institutions might bring to the democratic system.

Urszula Siłajak from the University of California, Berkeley, has issued a warning that the investment of private foundations may become unpredictable: "Yes, they have a lot of funds and can invest on a large scale, but they can also withdraw at any time and redirect their funds elsewhere."

Former director of the National Institute of Mental Health, Tom Insel, expressed his concerns: "I worry that because of Simons’ generosity, we may overlook the importance of using taxpayer money to support scientific research, treating it as an activity that can be privately funded. We must not forget that scientific research is essentially an investment, not a cost."

The Simons Foundation has made a substantial investment in autism research, with donations reaching $75 million just this year. This is driven by a personal emotional commitment, as there are family members in the Simons family affected by autism. Although investing in autism research is extremely important, it is not guaranteed that this funding will have a better effect on the research of other diseases. But Simons believes in his vision for science: "We have actually changed the face of medical research."

The research projects funded by Simons have discovered previously unknown new genes using mathematical methods. On a future autumn afternoon at the Flatiron Institute, the heads of the departments sat at the conference table near Simons' office, discussing the newly established fourth main department. Simons encouraged his team members to speak freely.

During the discussion, some departments proposed computational epidemiology and public health as a new direction, but this suggestion was not agreed upon by everyone. Computational neuroscience was also proposed; however, Simons questioned this, suggesting that the field of neuroscience is broad and difficult to achieve significant results in the short term. It is believed that the challenges in neuroscience are as complex as answering how the universe formed.

Then came the mention of earth sciences, which sparked Simons' interest. He expressed keen interest in the complex problems urgently needing to be resolved in this field. Although other leaders reminded that many researchers are focusing on climate change, Simons still stood by his own views, holding the decisive vote on the future direction of the institute.

After the meeting, Simons set a goal to establish the fourth main department before September 2018. When asked why not further expand the research departments, Simons said that to maintain excellent results and a collaborative atmosphere, the maximum number of departments he can effectively manage is four. He emphasized that "directing" these departments is a necessary measure for now.

Simons realizes that although he has been very considerate in constructing the structure of the institute, these structures must eventually operate independently without his supervision. The foundation has signed a lease for the institute’s premises for at least 35 years, which can even be extended to 50 years. As long as there are no major changes in tax laws, Simons' wealth will ensure the continued operation of the Flatiron Institute. However, he is also aware of human limitations; he hopes the institute can continue to develop for a century, even though it's something he cannot witness personally.