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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note