D.E. Shaw No High-Frequency Firm, It Says

Dec 4 2012 | 12:11pm ET

One of the industry's most prominent quantitative hedge funds is shunning the "high-frequency" label.

Two top D.E. Shaw & Co. executives told the Reuters Global Investment Outlook 2013 Summit in New York that the firm does not consider itself among the high-frequency set.

"I don't think we view ourselves as high-frequency traders," Darcy Bradbury, managing director for external affairs at the $27 billion hedge fund, said. "No one can define what high-frequency trading is, obviously. If it's using computers to trade stocks, we've been doing that for 25 years."

Bradbury said that less than half of D.E. Shaw's assets are in short-term models.

While Bradbury's protest may seem an effort by the secretive D.E. Shaw to distance the firm from a strategy that's gotten some bad press in recent years, Max Stone, a member of the firm's executive committee, said that he doesn't see HFT "as a malevolent force."

Stone also shed some light on where D.E. Shaw is investing in the closing days of what Bradbury called "a really good year" for the firm. He cited Japan, noting that shorting the yen and Japanese sovereign debt while betting on Japanese stocks would be a good move.

In Depth

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel's Griffin Reaches Settlement in Contentious Divorce

Oct 8 2015 | 10:14pm ET

Billionaire hedge fund manager Ken Griffin and his wife have settled a long-running...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note