De Shaw Research (DSR) is a quantitative investment firm based in New York City that utilizes computational biochemistry, machine learning, and high performance computing to make investment decisions. Founded in 1988 by David E. Shaw, DSR is known for its intense work culture and pioneering advancements in technology and finance.
Quick Facts About De Shaw Research
- Founded in 1988 by David E. Shaw
- Headquarters in New York City with offices in Hyderabad, India
- Employs around 1,000 people worldwide
- Manages over $50 billion in investment capital (as of 2018)
- Pioneered the use of computational biochemistry and quantitative trading strategies on Wall Street
De Shaw Research takes a heavily quantitative, technology-driven approach to investing and financial markets. The firm utilizes techniques like molecular modeling, machine learning, and high frequency trading to identify opportunities and manage risk. DSR has assembled some of the world’s most powerful supercomputers to run its financial models and simulations.
Work Culture at De Shaw Research
De Shaw Research is known for having an intensely driven work culture with long hours. Employees are expected to be available to work late nights and weekends as needed when opportunities arise in the markets. The work style has been described as “organized chaos” – while the hours are long, the work itself can be highly creative and autonomous.
Some key aspects of De Shaw’s work culture include:
- High expectations for quality of work and dedication to the job
- Frequent deadlines and tight time constraints
- Collaborative team environment with many group projects
- Appreciation for creative, “outside the box” thinking
- Lack of traditional workplace hierarchy
The atmosphere is casual in terms of attire and office policies, but extremely focused and intense when it comes to the actual work. Employees are given significant responsibility early on in their careers. De Shaw Research values intelligence, curiosity, and work ethic above all else.
Pros of the Work Culture
- Ability to work on challenging, cutting edge problems at the intersection of finance and technology
- Opportunities for creativity and independent thinking
- Collaborative team environment where you can learn from extremely talented peers
- Significant responsibility and ability to have impact early in your career
- Prestige of working for a well-known quantitative firm at the forefront of innovation
- Casual social atmosphere between driven coworkers
Cons of the Work Culture
- Extremely long hours, including late nights and weekends
- High pressure atmosphere with tight deadlines
- Always “on call” even after leaving the office
- Potential for burnout given the relentless pace
- Less structure and mentorship due to flat organizational structure
- Feeling isolated or anonymous due to large size of the firm (~1000 employees)
Compensation and Benefits
De Shaw Research aims to compensate its employees at competitive levels in order to attract top talent. Here is an overview of De Shaw’s compensation and benefits package:
Base Salary
Base salaries tend to be in line with other quantitative hedge funds and investment banks. According to Glassdoor, the average base pay is around:
- $200k for Quantitative Researchers
- $250k for Quantitative Developers
- $300k+ for higher level positions
Bonuses
Bonuses can make up a significant portion of total compensation, especially in good years. Bonuses are largely tied to individual and firm performance for the year. It is not uncommon for bonuses to be 100% to 200% of base salary at the junior level and increase from there as you advance.
Profit Sharing
De Shaw Research distributes 20% of the firm’s profits to employees annually. This serves as an additional performance-driven component of compensation. The profit sharing amounts depend on the fund’s profits and your level in the firm.
Benefits
De Shaw Research offers standard employee benefits including:
- Health Insurance
- Dental Insurance
- Vision Insurance
- 401(k) Retirement Plan
- Life Insurance
- Disability Insurance
- Paid Time Off
- Parental Leave
- Free Meals and Snacks
- Wellness Facilities
The firm is constantly upgrading its employee benefits and perks in order to stay competitive.
Recruiting and Interviews
De Shaw Research only hires about 1-2% of applicants. The recruiting process is highly competitive given the firm’s prestige and compensation. Here is an overview of what to expect:
Undergraduate Campus Recruiting
De Shaw recruits heavily from top undergraduate programs including MIT, Harvard, Princeton, Stanford and more. The focus is on quantitative and technical majors like Math, Physics, Computer Science, Statistics, Financial Engineering etc.
The process typically consists of:
- Resume Drop
- Coding Challenge / Test
- First Round Interview (technical questions)
- Final Round Interview
- Superday (series of 5-6 final round interviews)
Experienced Hiring
For roles that require work experience, the process may include:
- Resume and Cover Letter Submission
- Phone Interview
- Onsite Interview (can involve multiple rounds)
- Technical Assignment
- Final Panel Interview
De Shaw looks for evidence of exceptional ability in math, programming, statistics, finance, science and more. The interviews will probe your technical competency, problem solving, and creativity.
The questions are meant to evaluate your raw intelligence and potential, not just your credentials. It helps to practice thinking through quantitative problems and to brush up on fundamental CS/math concepts.
Is De Shaw Research a Good Place to Work?
Whether De Shaw Research is a good firm boils down to alignment with the intense, competitive work culture and interest in highly technical finance roles. Some key considerations:
Good Fit If:
- You possess strong technical aptitude in math, programming, data analysis etc.
- You enjoy solving complex quantitative challenges
- You thrive in high pressure environments with top performers
- You are ambitious and willing to work extremely hard early in your career
- You want high compensation and career opportunities
Bad Fit If:
- You prefer work-life balance and typical 9-5 schedules
- You dislike technical finance and want a role with more human interaction
- You dislike constant tight deadlines and high pressure situations
- You are not a strong team player and collaborator
- You require a high degree of structure and oversight
Conclusion
De Shaw Research can provide phenomenal opportunities for advancement, compensation, and cutting edge work at the intersection of technology and finance. However, the intense work culture is certainly not for everyone. Candidates must be prepared to work extremely hard under constant pressure to excel at DSR.
For those willing to embrace the demands, De Shaw can accelerate careers dramatically and lead to highly paid leadership roles in quantitative investing. But the personal sacrifices and singular focus required means the firm is likely a better fit for younger, ambitious candidates who value the work experience itself over work-life balance in the short term.