Former Head Of Plunge Protection Team Lands At DE Shaw

Tyler Durden's picture

Brian Sack, he who held the fattest finger on the Fed's green buy button until Simon Potter and his young protege Kevin Henry stepped into those prodigious shoes, has landed a role at mega quant fund D.E.Shaw. As Reuters reports, the former head of the Fed's Market Group will be the co-Director of Global Economics. The fund, with its reputation for mathematical modeling and computer-driven trading over short-term horizons will, we are sure, benefit from Sack's empirical ability to stomp on the throat of the VIX and tinker with VWAPs, though we hope he lasts longer than Larry Summers did. Of course, this almost guarantees that former-D.E.Shaw alum Jeff Bezos' share price will continue to surge as its fundamental performance plunges. The Plunge Protection Team, it appears, is in strong demand, though we hope someone explains that maybe D.E.Shaw does have a MtM policy (and not unlimited balance sheet).

Via Reuters,

D.E. Shaw & Co, a $28 billion hedge fund firm, known for its quantitative modeling, has hired a former top official from the Federal Reserve Bank and an economist from a rival hedge fund, to work in its macro investing unit, the firm said on Thursday.


Brian Sack, had been an advisor to the president of the Federal Reserve Bank of New York and prior to that headed the bank's Markets Group.




"Our macro team casts a wide net in terms of asset class and geography, and having these two talented individuals' insights strengthens our capabilities in several dimensions as we source and analyze trades in global markets,"




Founded in 1988 by David Shaw, a computer scientist, the firm now ranks as one of the world's most powerful hedge funds and relies heavily on mathematicians and scientists to create its investment strategies. For a time, the firm employed Lawrence Summers, a former Treasury Secretary, Harvard University President and economist, as an adviser.


As much as mathematical models are critical to the firm's success, less than half of its assets are now managed under computer-driven models with short time horizons. Last year, for example, Stone discussed that one of the big bets in its macro strategy centered around Japan and that these types of bets often take a long time to play out.


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fonzannoon's picture

That's too bad. I'd rather hear that he opened up a tiki bar in Panama. The fact that he still feels comfortable being shuffled around this giant board game means we must have a ways to go.

hedgeless_horseman's picture



Good hire: 


Fri, 09/03/2010 - 11:41 | Link to Comment hedgeless_horseman


Fundamental analysis? Earnings? Technical analysis? Charts? We don't have a prayer when Ben has his finger on the button under the table.

You can take the ghosts of Graham, Dodd, Edwards, and McGee, as well as every CFA on the planet to manage a portfolio. I'll take one insider at 33 Liberty and my performance will wipe the men's room floor with your's.

Love your spirit, kid. Now get back to class.


Say What Again's picture

The picture of the Sack is from a WSJ article; "Brian Sack Engineers Big Moves at Fed" dated Nov 4, 2009.


The caption under the picture reads; "The New York Fed's Brian Sack, in front, must figure out how to withdraw hundreds of billions of dollars that the Fed pumped into the financial system. Here, he confers with market group staffers last week in a bustling conference room."

Really -- back in 2009 they were worrying about withdrawing liquidity.  Really?


francis_sawyer's picture

I'm wondering when one of these ex PPT clowns is going to end up at Waddell & Reed... 

Say What Again's picture

A foot massage is NEVER just a foot massage.

ToNYC's picture

Take it from Mia:

You ain't ever going to know what went on between Marcellus Wallace and Tony Rocky Horror on the balcony that night.

AlaricBalth's picture

At the end of 2012 DE Shaw's second largest position was AAPL with 1,549,030 shares, valued at $825,679,000. As it stands now the shares are worth $658,337,750.

I guess using quantitative methods and proprietary computational technology to support fundamental research in the management of investments isn't all its cracked up to be.

francis_sawyer's picture

Who needs "quantitative methods and proprietary computational technology" when you can simply lean on crony jewry? 

Political_Savage's picture

Do you have nothing better to do than throw the Jew-commentary out?

What a small man you must be. Blame the Jews? My god man, have an original thought - blame yourself.

otto skorzeny's picture

he could blame himself for the banking mess-but the 12 Tribesmen Club runs that-and isn't that the root of the problem? it's like cutting off your foot because you blame it for stepping on the thorn-the problem is not your foot.

francis_sawyer's picture

Sorry ~ you're right... It was an original idea by francis_sawyer to create a leverage based fiat based paper money system, steal people's gold, get governments to latch on to the idea, when they were hooked, perpetrate wars against each other, run up the debt, get citizens addicted to social safety nets via media propaganda, create a system of taxation to collect payments on the debt, POCKET INTEREST PAYMENTS FOR MYSELF ALONG THE WAY [for money that some dipshit cronies that voted, in the daed of night, on a Christmas holiday, allowed me the franchise on, that I printed out of thin air, with ZERO risk to myself], & subsequently used that power to buy politicians, put my cronies into key banking power nodes, rig markets, & when the ponzi finally came crashing down, put the aggregate system into hyperdrive & get the engines started on the escape boats as well as con dipshits like Political_Savage to look the other way...


All MY idea... I admit it... I'm blaming myself as we speak... [came up with the idea in my spare time during the commercial breaks of Fiddler on the Roof thinking about "Tradition" & "If I Were a Rich Man" & spitting on everyone else]... 

ToNYC's picture

Noah was the first Monsanto to grab the breeding rights. Hah! some Flood they believed, but it worked for the tribe.

Stoploss's picture

"mathematical modeling"



insanelysane's picture

The firm obviously realized that its quantitative models don't work in a totally manipulated environment so the hired someone that has phone numbers and contacts inside Manipulation Central.

Say What Again's picture

Oh good.

For a brief moment I was getting nervous.

I thought we might see him on the runway with Gisele on the next VS special.  Think of the permanent psychological damage that might have followed that vision.

Divided States of America's picture

Its because of connections like these that makes me willing to have a global financial collapse and live a life of destitude if I also see the likes of Buffett, Sack, Blankfein, Dimon on the same fields that I am tilling.

HD's picture

ANYONE can run the PPT. ANYONE.  How hard is it to bang the close when you are above the law and have unlimited funds with no regard for losses.


fonzannoon's picture

HD have you ever tried to remember to push a button continuously while snorting coke and chasing 3 hookers around your office?

I did not think so. So let's not all sit around and be judgy Mcjudge.

HD's picture

 Fair enough. I stand corrected.

hedgeless_horseman's picture



HD have you ever tried to remember to push a button continuously while snorting coke and chasing 3 hookers around your office?

To be fair, they are called interns, not hookers, and they don't need to be chased because they are busy pushing the button continuosly for BUY and for DOUBLE ESPRESSO.

GolfHatesMe's picture

Curiously, trading has been changed to 10:25 am and 1:55 pm only 

jeff314's picture

But the PPT was just a myth right????

wagthetails's picture

aw...i miss that Kevin Henry, the real super hero holding up this market. 

medium giraffe's picture

"Brian, why won't this turd flush?!"

venturen's picture

Just closing the loop....give away massive amount of goveerment money...then go collect it at some wall street firm(PE, HedgeFund, lobbying firm, etc)! Wait till the taxpayer finds out what they got for their $10 Trillion Dollar giveaway!  

Xibalba's picture

Why can't these guys be the ones 'suicided'?

atomic180's picture

Abiet for a small payraise... nice for Shaw too have an EXPERT with reliable sourses inside the Federal Reserve... gota keep that revolving door well greased...

Conman's picture

Does M-t-M stand for mark to myth? If so carry on Sack! You are doing gods work.