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

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note