Bloomberg Billionaires Index

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# 319 David Shaw $5.05B

Random fact: Had assistants take his planned trips in advance for efficiency.

Overview

Shaw is the founder and majority owner of D.E. Shaw & Co., an investment group and quantitative hedge fund manager. The New York-based firm employs 1,200 people and has about $50 billion in assets under management. Shaw's the chief scientist at D.E. Shaw Research and a research fellow at Columbia University.

As of :
Last change -$19.6M ( -0.4%)
YTD change -$349M ( -6.5%)
Industry Finance
Biggest asset Cash
Citizenship United States
Age 69
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

David Shaw's net worth of $5.05B 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
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Misc. liabilities
Confidence rating:

Shaw's fortune was built through the hedge fund D.E. Shaw & Co., which he founded in 1988. The hedge fund managed about $50 billion in December 2019, according to its website, and specializes in investing using quantitative methods and proprietary computational technology.

Shaw is estimated to have earned almost $5.5 billion from the firm since 2005, based on an analysis of firm returns and reporting from Institutional Investor, the Financial Times and Bloomberg. These cumulative earnings are adjusted for known spending and estimated taxes, and are believed to be invested both within D.E. Shaw as well as outside the firm.

Shaw sold 20% 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% of the hedge fund company, based on a 2019 Form ADV disclosure that places his ownership between 50% and 75%. The hedge fund is valued based on assets under management of $50 billion, less Shaw's personal assets and a 10% liquidity discount, and compared to the price-to-AUM of publicly traded hedge funds peers.

Randall Whitestone, a representative of DE Shaw, declined to comment on Shaw's net worth.

Biography

Birthdate: 3/29/1951
Family: Married, No children
Education: Stanford University, Stanford University, University of California San Diego

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 July 2019.

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, and an Adjunct Professor of Biochemistry and Molecular Biophysics at Columbia's medical school. The hedge fund is managed by a five person executive 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.