Awards for Excellence 2005
DE Shaw
The brightest people have helped DE Shaw generate the best returns
| David Shaw |
It is easy to be in awe of highly secretive alternatives house DE Shaw & Co. The firm might not be the first to use complex mathematics and computer programmes to exploit inefficiencies – so called systematic statistical arbitrage – but it has certainly been one of the most successful. And its success is a result of its people. "It's a firm of rocket scientists," says one industry consultant.
Its results have been equally impressive, with consistent double-digit returns and funds under management that have more than doubled in the past 18 months.
Its founder, David Shaw, insists on employing only the most "extraordinary" individuals.
Shaw himself has an exceptional employment history. He served as chairman of the panel on educational technology for president Bill Clinton, and is also the treasurer of the American Association for the Advancement of Science. At present he spends much of his time involved in the firm's technology ventures business.
A staff of 20 is responsible for recruitment alone, whittling down the average of 500 applications for each post.