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At DE Shaw, a star falls over risk concerns

Departure of hedge fund rising star shows how Wall Street firms have moved to reduce dicey positions and rein in even stellar traders

The New York firm manages $37bn and is among the largest hedge fund companies in the world
The New York firm manages $37bn and is among the largest hedge fund companies in the world Photo: iStockPhoto

A rising star left hedge fund powerhouse DE Shaw after the firm determined he had violated its risk guidelines, according to people close to the matter, a sign of how Wall Street firms have moved to curb risks and rein in even their biggest moneymakers.

Parvinder Thiara, a 30-year-old graduate of Harvard University and a Rhodes scholar, left late last year after helping DE Shaw's "macro" group rack up hundreds of millions of dollars in profits in recent years, the people said.

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