5 Best Hedge Funds of All Time

4. D E Shaw

Founded: 1988
Net Gains Since Inception: $51.9 Billion

Once described as an intriguing and mysterious force on Wall Street, D. E. Shaw & Co. was founded in 1988 and deployed algorithms for security trading. The hedge fund made a name for itself in developing complicated mathematical models and sophisticated computer programs to exploit anomalies in the financial markets.

Founded by David E. Shaw, a Columbia University faculty member, the hedge fund relied on scientists, mathematicians, and computer programmers to develop algorithms and programs for trading the markets. At the height of the financial crisis in 2008, the hedge fund had about $20 billion in the equity markets and ended up losing 5% of its assets and ended up recording its worst perfuming month.

In 2022, at the height of the equity market rout, D. E. Shaw & Co. came out on top, gaining 24.7%, as the S&P 500 fell 19%. The outperformance can be attributed to systematic discretionary and hybrid investment strategies.