Skip to main content

Fired DE Shaw MD Prepared To Tell A Judge That His Former Hedge Fund Is A Roiling Den Of Sin

"Yo FINRA! The quants, the MBAs, the painters and the novelists? They alllllllll be fuckin!"

You guys remember Daniel Michalow, right?


He's the former DE Shaw managing director who openly yearned for a colleague to call "Sugar Tits" and then took his firing in stride by writing David Shaw a letter that basically alleged DE Shaw to be a non-stop, booze and drug-fueled nerd fuckfest that sometimes manages assets.

Yeah, that Daniel Michalow.

Well, there's an update. According to Business Insider, Michalow is not looking to just set let the bridges he has burned lead his way to a settlement package. He's looking to make a real stink here.

Daniel Michalow, a former senior portfolio manager in the firm's discretionary macro group, plans to take legal action against his former employer next month, a person familiar with the matter said. Michalow plans to file a statement of claim in arbitration next month with the Financial Industry Regulatory Authority. Michalow plans to claim that the New York hedge fund, in its response to Michalow's termination, defamed him in internal and external communications and to the media.

Oh, yeah, tattling to FINRA. Now we got a fight on our hands...

Michalow now alleges that D.E. Shaw should have stated publicly that he was not fired for misconduct, according to the person familiar with the matter. Michalow also alleges that D.E. Shaw should not have said that he violated the firm's values. He plans to make these claims in a FINRA action.
"From day 1, my primary goal has been for David Shaw and his team to tell the truth and they have not," Michalow alleges in a statement to Business Insider.

While we assume he means that DE Shaw wasn't clear about his behavior, we are also choosing to assume that he wants the firm to provide clarity about all the special people at DE Shaw banging the hell out of each other after snorting Molly in the morning meeting. And we definitely want details about any female Wharton MBAs bending a first-year male poet turned quant over a Bloomberg terminal and just on him.

And maybe we'll hear about all of it, because apparently Daniel Michalow will not be paid to go away...

D.E Shaw offered Michalow more than $10 million in compensation after his separation under conditions that he not sue the firm, the person close to the matter said. D.E. Shaw continued to offer that figure after Michalow published his letter to David Shaw on May 7, the person added. Michalow has rejected the offer.

We're just gonna make some popcorn and get ready for this one to develop.

The hedge fund manager who says he's a #MeToo scapegoat plans to take legal action against $50 billion D.E. Shaw [BI]



Fired DE Shaw MD Shocked That Anyone Was Offended By His Mel Gibson Impression What With All The Orgies Raging In The Office

Daniel Michalow admits to being an asshole, but he also wants David Shaw to know that erryone at DE Shaw be f@ckin.


Fired DE Shaw MD Wasn't Kidding About That "See You In Court" Stuff

Dan Michalow actually filed an official complaint against his former fund.

DE Shaw Shrug

DE Shaw Telling Its Traders To Leave Now Or Pretty Much Stay Forever

The Daniel Michalow apostate storyline is coming to a head at everybody's favorite ur-quant fund.


A Scandal And A Rash Of Leaks Reveal D.E. Shaw To Be An Almost Normal Hedge Fund

D.E. Shaw is still spending its days aggressively worrying that it's just another hedge fund full of hedge fund types.

DE Shaw Shrug

Anne Dinning Cuts Herself A Sweet Deal To Give DE Shaw The Most Expensive Token In Finance

PRO TIP: If you're going to reappoint an esteemed female investor to the all-male leadership of your hedge fund at a pivotal cultural moment, at least pretend she's going to do it full-time.

David Shaw Ivy Hedge

David Shaw Made A Beautiful Hedge Trade On His Kids' Academic Futures

Throwing $1 million every year for a decade at Harvard, Stanford, Yale and Princeton, but giving only half that to Brown and Columbia? That's just solid asset management.