Renaissance 'theft' case is an industry whodunnit

Sat May 1, 2004



Griffin and Wepsic join battle against Millennium and its Russian scientists

Jim Simons, founder of Renaissance Technologies, has received support from other big guns in the hedge fund industry, such as Ken Griffin, founder of Citadel, and Eric Wepsic, a senior executive at D.E. Shaw, who have testified on his side in a legal action recently launched against Millennium Partners and two of their Russian scientists alleging that they conspired to steal Renaissance's phenomenally successful statistical arbitrage program.

The case is already attracting the keen attention of many of the leading hedge fund groups as it may prove to be a test-case in their battle to hold on to their unique and proprietary ways of trading. This explains why so many of the big groups, like D.E. Shaw, Citadel, Amaranth, Viking and Clinton Group, use complex non-compete clauses to protect their businesses.

However, it is far from certain...

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