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Goldman Sachs alum raise $500 million each – DE Shaw to Layoff 10%

 ********  IvyPlus December 8th How to Run Your Hedge Fund as a Business Event – http://bit.ly/auce1t  ******* 

DE Shaw, a quant hedge fund famous for hiring math geniuses is laying off 10% of their workforce.  Zerohedge reports that AUM has fallen by $7 billion while institutional investor reports AUM is down from $30 billion to $21 billion.  Layoffs happen after gates have been dropped by DE Shaw to prevent investor redemptions as trading volumes have substantially decreased.  The New York Times reports that trading volume was down by 11% in July and 30% in August. Total AUM is down from $40 billion in 2008.  Fierce finance reports that "DE Shaw has been identified as a poster child for treating investors poorly in 2008 due to substantial gating that are expected to be drawn down over time." http://bit.ly/9pzT6F

The layoffs are seen as a sign of the times amid news that Wall Street bonuses will be reduced by at least 25% this year and layoffs are expected to surpass 40,000 worldwide.  

Meanwhile 3 Goldman Sachs alums: Eric Mandelblatt, Mark Carhart and Pierre-Henri Flamand expect to have raised at least $500 million each.  Bloomberg reports more here, http://bit.ly/axMjJC

  ********  IvyPlus December 8th How to Run Your Hedge Fund as a Business Event – http://bit.ly/auce1t  ******* 

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