The former professor may have found the algorithm for
As little as five years ago, it was far from certain that D.
E. Shaw would survive the global bond market rout that felled
Long-Term Capital Management. Today, the firm is living proof
that it is possible to bounce back from near disaster and
become one of the most stable and fast-growing industry
players. In fact, David Shaw, the founder and majority
shareholder, may have found the formula for growth that has
eluded other groups.
While Renaissance Technologies and SAC Capital have thrown
in the towel and accepted that their businesses cannot absorb
more capital and are busy handing money back to investors,
Shaw's brainchild is still taking in money. Assets were at $7.3
billion by the end of February and there is no sign that the
growth of the last few years is over. Three new strategies were