PDT Partners

PDT Partners (Process Driven Trading Partners) is a hedge fund company, led by quantitative trader Peter Muller, that was founded in 1993 as part of Morgan Stanley's trading division and spun out as an independent business in 2012.[2][3] It has offices in New York City and London.[4]

PDT Partners
IndustryHedge fund
Founded1993
FounderPeter Muller
HeadquartersNew York City
ProductsInvestment funds
ServicesInvestment management
AUMUS$ 8.5 billion
(as of June 30, 2022)[1]
Websitepdtpartners.com

History

PDT Partners started out as a proprietary trading division (called the Process Driven Trading Group) of multinational financial services corporation Morgan Stanley in 1993.[5][2] According to Bloomberg, PDT's investments have returned an estimated annual average of more than 20 percent through 2010.[5]

In January 2011, Morgan Stanley announced that it would spin off PDT into a separate hedge fund in order to comply with the Dodd–Frank Wall Street Reform and Consumer Protection Act.[5][6]

The spin-off began in 2012. In October 2012, it was announced that the Blackstone Group had put $500 million into PDT, but without seeking any equity in the hedge fund. Bloomberg.com considered this unusual and a testament to Muller's market power and ability.[3] In 2013, the spin-off was complete. In February 2013, it was announced that the fund had raised $2.3 billion in total and was beginning operations in London and Hong Kong in addition to New York City.[6]

Peter Muller, the CEO of PDT, who started PDT as Morgan Stanley's proprietary trading group, was described by Bloomberg.com as an "unlikely executive", a 47-year-old math wizard, and a person with diverse intellectual interests and hobbies.[5][7] In 2019, Forbes reported that Muller earned around $150 million in the previous year, making its list of the highest-earning hedge fund managers for 2018.[8]

References
  1. "The largest managers of hedge funds (P&I Sep 2019)". No. Special Report Hedge Funds. United States: Pensions & Investments. Crain Communications Inc. 16 September 2019. Retrieved 15 October 2019.
  2. "PDT Partners". Archived from the original on August 8, 2014. Retrieved August 1, 2014.
  3. Burton, Katherine (October 9, 2012). "Muller's PDT Is Said to Get $500 Million From Blackstone". Bloomberg.com. Retrieved August 1, 2014.
  4. "Contact Us". PDT Partners. Retrieved August 1, 2014.
  5. Teitelbaum, Richard (July 6, 2011). "Morgan Stanley Yoga-Troubadour-Crossword-Math Pro Muller Flees". Bloomberg.com. Retrieved August 1, 2014.
  6. Agnew, Harriet; Turner, Giles (February 5, 2013). "Morgan Stanley traders reassemble as Muller opens PDT in London". Financial News. Retrieved August 1, 2014.
  7. Wachtel, Katya (July 7, 2011). "We've Never Been More In Awe Of Someone's Life Than We Are Of Quant Legend Pete Muller's". Business Insider. Retrieved August 1, 2014.
  8. "Peter Muller".
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