The New York based investment management firm D.E. Shaw & Co., L.P. was founded by David E. Shaw in 1988. The firm primarily trades using systematic and computer driven methods. David E. Shaw received his Ph.D. from Stanford University in 1980 and was a faculty member of the Computer Science Department at Columbia University until 1986. He left to pursue work in computational finance at Morgan Stanley and started D.E. Shaw & Co., L.P. in 1988. In 2002 he began building a scientific team at D.E. Shaw Research, LLC, at which time he also created an executive committee of six people and transferred day-to-day management of D.E. Shaw & Co., L.P. Since 2010 D.E. Shaw has spent a majority of his time devoted to his role as chief scientist of D.E. Shaw Research, LLC, leading an interdisciplinary research group in the field of computational biochemistry.
D.E. Shaw & Co., L.P. had approximately $32 billion in investment capital at the end of 2013. The firm has made a habit of hiring from the math and physics areas, versus the financial sector. The company uses quantitative math-based techniques and computers to identify trading and investing opportunities. The models and methods used are proprietary to the company and are developed in-house. The firm has recently included qualitative strategies based on expert human analysis. D.E. Shaw & Co. also provides customized debt and equity financing to selected companies, invests venture capital and creates projects of its own relating to new technologies.
D.E. Shaw’s Oculus fund was marginally profitable in 2013.