Lehman Brothers Holdings Inc. announced on Tuesday that it had bought a 20% stake in hedge fund D.E. Shaw Group, which was formed in 1988 and has about $29 billion in aggregate investment capital. The hedge fund has more than 1,000 employees across the United States and internationally.
D.E. Shaw uses computer programs to find discrepancies in prices among securities. It also invests in distressed debt and makes bets on broad economic trends using stocks, bonds, currencies and commodities.
Lehman Brothers, traditionally seen as a bond house, has invested heavily in alternative investments in recent years, they have minority ownership in four other hedge funds, Spinnaker Capital Group, GLG Partners LP, Ospraie Management LP and Marble Bar Asset Management.
Lehman manages $225 billion, including $9 billion in alternative-investment assets such as hedge funds. That doesn’t include money at the firms in which it has minority stakes. Last year, the firm generated $1.4 billion in revenue from asset management, or 8% of total revenue.
The price of the stake wasn’t disclosed, though the New York-based firms said in a statement today it would be tied to hedge fund D.E. Shaw’s performance.
Alex Akesson
Contributing Writer
HedgeCo.Net
Email: [email protected]
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