Category Archives: Investment Management Firm

DeShaw Fighting Multiple Operational Battles

DeShaw is the largest hedge fund using computer algorithms for trading. It is valued in the billions of dollars. It is considered to be one of the top technologically advanced trading companies. These factors make it a very impressive company overall. This does not preclude it from the usual issues that follow success.

Allegations against the company were levied. These were toward one of the upper managements in terms of sexual misconduct. Said employee took termination and suspension of trading privileges for an 18-month term. DeShaw has also had to deal with SEC violations that now mandate the signing of non-compete agreements.

Employees of DeShaw must sign the agreements by September 15th. Anyone who does not sign the agreements will be terminated. The coincidence is that Michalow is coming off of his suspension on that date as well. It is believed that he will hire on the DeShaw employees that are let go or leave.

DeShaw management maintains that this is just a coincidence. They argue that their employees would not take the pay cut leaving would entail. They maintain that DeShaw simply wants a show of loyalty from the employees and signing the agreements expresses just that.

Some employees, visitors and even clients state leaving the company is a matter of ego flexing. DeShaw now displays paintings of committee members in the front foyer of the business. These paintings are said to be huge and occupy the bulk of the wall space. DeShaw is also holding company functions that many complain are more like pat on the back sessions than strategic planning and company briefing.

One of the more problematic issues with employees who are choosing to leave DeShaw is that they are joining Michalow. While this does not pose a general problem, female employees pose the greatest threat. Michalow was accused of sexually misbehaving at DeShaw.

Michalow has never denied his role of being a less than respectable individual. He has refuted claims of DeShaw that he was a sexually abusive monster. As more women find their way to his employ it makes the DeShaw accusations appear untrue and biased.