LOOKING FOR UNUSUAL SOURCES OF RETURN
The D. E. Shaw group focuses on the pursuit of attractive risk-adjusted returns for our investors. In our alternative investment strategies, this means an emphasis on uncovering hard-to-find sources of return with modest long-term correlation to traditional asset classes; we look for unique opportunities that are less exposed to competitive pressures and market crises. In our benchmark-relative strategies, we seek to use quantitative techniques to generate returns that exceed standard benchmarks and that offer diversification from conventional style factors like value, growth, size, or momentum.
Risk management is an integral part of all our activitiesboth investment and non-investment. While we have a dedicated risk team, we consider risk management to be everyone's job. It's our belief that long-term investment success requires not only mitigation of day-to-day investment risk, but also careful preparation for extraordinary events and an unusual attention to detail in the areas of operations, compliance, and other key business functions. Having navigated a number of challenging market environments over our more than 25-year history, we believe we've gained valuable insight into practices for attenuating risk.
Our investment paradigm favors teamwork among business units focused on different markets and investment approaches. Our teams work in close collaborationnot in competitive silosto share trade ideas, manage risks, streamline processes, and explore new opportunities. We think this creates a number of research and portfolio management advantages and fosters a stimulating and rewarding work environment.