D.E. Shaw Launches Machine Learning Unit

The quant-oriented hedge fund firm said the new unit will run alongside its existing efforts in machine learning.

Illustration by II

Illustration by II

Multistrategy hedge fund firm D.E. Shaw Group has formed an independent machine learning research and developmental group, the company said Tuesday. This group is to run parallel to the quantitatively oriented firm’s longstanding efforts in the area.

The Machine Learning and Research Group will be run by Pedro Domingos, who joins as a managing director.

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Domingos is a professor of computer science and engineering at the University of Washington, co-founded the International Machine Learning Society, and is a member of the editorial board of the journal Machine Learning.

He will report to Cedomir Crnkovic, who spent much of his 20-plus-year tenure at D.E. Shaw running its futures and currencies systematic trading group.

“Over the past few decades we have developed and deployed increasingly sophisticated machine learning techniques,” said Eric Wepsic, who oversees quantitative trading and investments, and sits on D.E. Shaw’s executive committee. “This new, independent venture reflects the importance we attach to gaining fresh perspectives and insights as technology evolves.”

D.E. Shaw managed more than $50 billion as of June 1.