BOSTON, March 7 (Reuters) - D.E. Shaw & Co, a $28 billion hedge fund firm, known for its quantitative modeling, has hired a former top official from the Federal Reserve Bank and an economist from a rival hedge fund, to work in its macro investing unit, the firm said on Thursday.
Brian Sack, had been an advisor to the president of the Federal Reserve Bank of New York and prior to that headed the bank’s Markets Group. Angel Ubide, had been director of global economics at Tudor Investment Group and before that worked at the International Monetary Fund.
Together the pair will be co-directors of Global Economics at D.E. Shaw’s discretionary macro investing unit.
“Our macro team casts a wide net in terms of asset class and geography, and having these two talented individuals’ insights strengthens our capabilities in several dimensions as we source and analyze trades in global markets,” Max Stone, who runs the macro investing unit and is a member of the firm’s five-person executive committee, said in a statement.
Founded in 1988 by David Shaw, a computer scientist, the firm now ranks as one of the world’s most powerful hedge funds and relies heavily on mathematicians and scientists to create its investment strategies. For a time, the firm employed Lawrence Summers, a former Treasury Secretary, Harvard University President and economist, as an adviser.
As much as mathematical models are critical to the firm’s success, less than half of its assets are now managed under computer-driven models with short time horizons. Last year, for example, Stone discussed that one of the big bets in its macro strategy centered around Japan and that these types of bets often take a long time to play out.
D.E. Shaw posted strong returns in 2012 and assets have risen steadily from roughly $21 billion in late 2011.
Ubide earned his PhD in economics from the European University Institute in Florence, Italy while Sack earned his PhD in economics from the Massachusetts Institute of Technology.