The D.E. Shaw Group was founded in 1988 by David E. Shaw, who was a pioneer in the use of quantitative analysis and computational finance to profit from anomalies in the market. As of November 2015, the New York-based firm has $39 million in assets under management (AUM), with offices in Hong Kong, Shanghai, Tokyo and Mumbai.

The firm employs a broad array of strategies across global markets including in developed and developing countries. In addition to its renowned quantitative investing in equities, futures and options, the D.E. Shaw Group is deep with expertise in qualitative analysis, particularly in the areas of distressed credit energy trading and real estate. The firm invests about two-thirds of its capital in quantitative strategies and a third into qualitative strategies. It is active globally in both public and private markets with investments in a wide range of instruments including:

• Asset-Backed Securities

• Benchmark-Relative Equities

• Convertible Securities

• Corporate Credit

• Energy Trading

• Equity Arbitrage

• Equity Options

• Fixed Income

• Futures and Currencies

• Long/Short Equities

• Macro Investing

• Private Equity

• Reinsurance

• Venture Capital

Founder David E. Shaw

After obtaining a Ph.D from Stanford University in 1980, David Shaw’s original path was to become a computer scientist, working with supercomputers to research and develop massive parallel computing. While working as a faculty member at Columbia University, Shaw was lured to Wall Street by Morgan Stanley (NYSE: MS) to work in the company’s automated proprietary trading group, where he began to hone his quantitative skills in computational finance. Shaw left Morgan Stanley in 1988 to ply his proprietary methods in his own firm. Over the last 25 years, D.E. Shaw Group has grown from a small nest of mathematicians and computer scientists into a global investment management firm with more than 1,300 employees. In 2002, Shaw stepped down as chief scientist at D.E. Shaw Group to become chief scientist at D.E. Shaw Research where he is one of the world’s leading authorities in computational biochemistry. Shaw is still involved in higher-level strategic decisions affecting the investment management businesses of the firm.

The Management Team

In 2002, Shaw replaced himself with an Executive Committee consisting of four of the firm’s managing directors. The transition from visionary founder and leader to a leadership-collective of next-generation managers was unprecedented in the hedge fund industry. Each of the committee members was handpicked and personally trained by Shaw, and they have been working together for more than two decades. The Executive Committee is responsible for the development and execution of the firm’s policies and strategic direction. Under the Executive Committee are 25 managing directors who are each responsible for specific investment activities of the firm. The average tenure of the managing directors is over 10 years.

The four members of the Executive Committee are Anne Dinning, Max Stone, Julius Gaudio and Eric Wepsic. Dinning has a Ph.D. in computer science and has been with the firm since 1990. She supervises the worldwide asset management businesses. Stone joined the firm in 1992 after graduating from Brown University, magna cum laude. He oversees the discretionary macro-investment strategy. Gaudio joined the firm in 1993 after graduating magna cum laude from Harvard University with a degree in economics. Gaudio oversees asset-backed securities and other credit strategies. Wepsic has been with the firm since 1994. He received an A.B. and A.M. in mathematics from Harvard University. His primary oversight responsibility is with the firm’s alternative investment strategies.

D.E. Shaw Group counts among its staff several Rhodes Scholars, Fulbright Scholars, Putnam Fellows, and International Mathematical and Physics Olympiad medalists. More than 60 of its investment professionals hold doctorates, and 20% of its staff are published authors in specialized academic journals.