D.E. Shaw's London investment professionals earned $778k last year
As as far as multistrategy hedge funds go, D.E. Shaw isn't a bad place to be, according to our most recent Ideal Employer report. It probably helps that it pays well, even if its London subsidiary is making lower profits than before.
D.E. Shaw operates two subsidiaries in the UK – a limited company (LTD), D. E. SHAW & CO. (U.K.), LTD. and a limited liability partnership (LLP), D.E. SHAW & CO. (London) LLP. The partnership has just registered accounts for the year ending 31 March 2023 in Companies House. They provide an interesting insight into pay.
Average salaries and bonuses paid to the 74 employees at D.E. Shaw & Co. (London) LLP went from £563k ($717k) for the year ending 31 March 2022 to £611k ($778k) for the next. This was despite revenues falling from £125m ($159m) to £111m ($141m). Profits for the year available for distribution between 'members' (partners), fell even more significantly, from £51m ($65m) to £20m ($25m).
The balance of staff at the fund changed in 2023. Although the total number of employees went up – from 69 to 74 – the number of “investment professionals” went down, from 30 to 26. The increase was driven by support and administration staff, whose numbers rose from 39 to 48.
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DE Shaw has two members (partners) listed in London - the limited company and outgoing senior executive Julius Gaudio). In 2023, it paid profits of £16m ($20m) to one – and £4.2m ($5.3m) to the other. That compares to £47m ($60m) and £4.2m the previous year.
Globally, D.E. Shaw had a pretty good 2023. According to Bloomberg, its primary fund returned around 10% over the course of the year – not as good as Citadel, but better than Verition and ExodusPoint (and on par with Millennium). It also came fifth in our Ideal Employer survey for hedge funds.
DE Shaw declined to comment.
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