Renaissance Institutional Futures, a $3 billion hedge fund run by James Simons, is foregoing management fees for 2009 as a response to poor performance in 2008.

Simons told investors he was waiving the 1% fixed management fee this year, even if the fund does well, and the fund will have to make back losses before investors have to pay performance fees. The fee break is essentially a $30 million price cut.

The Renaissance futures fund specializes in commodities futures. The larger and older Renaissance Institutional Equities Fund won't cut management fees this year, despite a 16% decline for 2008. Renaissance's Medallion fund, which holds Renaissance employees' money, posted an 80% return for the year.

Simons, 70, oversees the three funds with assets totaling $25 billion.

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