If you’re a quant who wants to work for a hedge fund, you probably want to work for D.E. Shaw. Heralded as “the first great quant hedge fund,” D.E. Shaw launched in above a Marxist bookshop in New York City in the 1980s and came to the UK 13 years ago. D.E. Shaw & Co. (London) LLP just released its results for the year ending March 2018. They suggest you’ll be lucky to get a job at D.E. Shaw, but that you’ll make good money if you do.
There were only 21 slots for top quant portfolio managers at analysts at D.E. Shaw’s London office in the year ending March. This was up from 16 one year earlier, but is still hardly on a par with the biggest hedge funds like Millennium Management, which has nearly 150 registered staff in London according to the FCA Register. D.E. Shaw’s 21 traders are supported by 22 London administrators.
The original quant fund is pretty generous when it comes to paying its people. The average UK employee (admin staff included) earned £464k ($587k) last year. The highest earning of the fund’s three UK partners earned £4.3m, with a further £5.7m shared between the other two. To complicate matters, one of D.E. Shaw’s London partners is D.E. Shaw & Co. UK, another listed entity. The other two are Neil Cosgrove, who’s worked for the fund in the UK since 2005, and Julius Gaudio, a Harvard economist in his 40s who has his own philanthropic foundation.
D.E. Shaw & Co (London) made profits of £10m on turnover of £52m last year. On its website, the fund says it is, “extensively searching the globe for talented individuals,” and hires people who are, “able to think creatively, who are relentlessly rational, and who put ego aside in the interest of getting things right.”
Sarah Butcher – Read the full article on efinancialcareers.com