Bloomberg Billionaires Index

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#404 David Shaw $4.77B

Random fact: Had 1998 bond arbitrage losses similar to Long-Term Capital Management.

Overview

Shaw is the founder and majority owner of D.E. Shaw and Co., a quantitative hedge fund with about $41 billion in assets under management. He has managed a computer-driven scientific research firm, D.E. Shaw Research since 2001, after appointing a six-person team to run the hedge fund. He also teaches at Columbia University.

As of Oct. 17, 2017:
Last change No change
YTD change +$6.34M (+0.1%)
Industry Finance
Biggest asset Hedge fund assets
Citizenship United States
Age 66
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

David Shaw's net worth of $4.77B can buy ...

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troy ounces of gold
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barrels of crude oil

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of the GDP of the United States
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of the total wealth of the 500 richest people in the world
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of the top 100 U.S. college endowments
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of the top 200 U.S. executives’ total awarded compensation
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of U.S. existing home sales
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times the median U.S. household income

Latest News

Net Worth Summary

Cash
Private asset
Public asset
Misc. liabilities
Confidence rating:

Shaw's fortune was built through the hedge fund D.E. Shaw & Co., which he founded in 1988. He probably has about $3.75 billion in assets in D.E. Shaw. This is based on personal profits from fund performance from 2005 through 2015, as reported by Institutional Investor's Alpha Magazine and adjusted for annual performance from 2005 through 2012 as detailed in a publicly available Rhode Island Treasury Department report on D.E. Shaw and as reported by Alpha. From 2013 through 2016, performance is adjusted based on the returns of the Hedge Fund Research market neutral equity index.

Shaw sold 20 percent of his ownership in the hedge fund in 2007 to Lehman Brothers for $775 million, based on a report by the Wall Street Journal that cited a price between $750 million and $800 million without disclosing its source. This money has been adjusted for taxes and market performance since as cash and other assets, less outflows for charity and real estate.

The billionaire is credited with owning about 63 percent of the hedge fund company, based on a 2016 Form ADV disclosure that places his ownership between 50 percent and 75 percent. The hedge fund is valued based on assets under management of $41 billion, as disclosed on the company's website as of Jan. 1, 2017, less Shaw's personal assets and a 25 percent key-man risk, and compared to the price-to-AUM of publicly traded hedge funds Och-Ziff and Man Group.

A residential property in Hastings-On-Hudson, New York, is valued using the 2016 market value as determined by the town assessor.

A phone call requesting comment to D.E. Shaw spokesperson Darcy Bradbury wasn't returned.

Biography

Birthdate: 3/29/1951
Family: Married, No children
Education: 1980, Stanford University, PhD 1975, Stanford University, Master's Degree 1972, University of California San Diego, Computer Science, Bachelor's Degree

David E. Shaw is founder of quantitative hedge fund D.E. Shaw. He received his bachelor's degree from the University of California, San Diego, and his doctorate from Stanford University in 1980. He taught at Columbia University until 1986, when he decided to pursue computational finance, according to a biography of the billionaire on the D.E. Shaw website in October 2016.

Shaw then joined Morgan Stanley and went on to become vice president of technology for two years, before founding his firm in 1988. He stepped down from active management of the hedge fund in 2001, electing to devote his time to his research in the field of computational biochemistry. He's now chief scientist for D.E. Shaw Research and a senior research fellow at the Center for Computational Biology and Bioinformatics at Columbia University. The hedge fund is managed by a six-person team, while the billionaire remains active in strategic firm decisions, according to the website biography.

The billionaire lives in Hastings-On-Hudson, New York, with his wife, Beth Kobliner Shaw.

Milestones
  • 1980 David E. Shaw receives PhD from Stanford University.
  • 1986 Leaves teaching post at Columbia to enter finance.
  • 1988 Leaves Morgan Stanley to found firm with $28 million capital.
  • 1994 Appointed to the President's Council of Advisors on Science and Technology.
  • 2001 Steps down from operational role to focus on his research.
  • 2002 Creates D.E. Shaw's executive committee.
  • 2005 SEC orders firm to reveal stock assets after at least 5 years of secrecy.
  • 2010 Cuts 10% of workforce.