One of the world’s biggest hedge funds is making a big push into traditional asset management to diversify its customer base – part of a growing trend towards the convergence of hedge funds with traditional money management.
DE Shaw is expected to announce on Monday the launch of a new product aimed at institutional investors who want conventional money management, but with the ability to sell short up to a certain level.
Trey Beck, who is in charge of developing the institutional business for DE Shaw, said the group, which manages $23bn in hedge fund strategies, had only about $300m in traditional asset management but planned to increase this substantially and had just won three new mandates.
