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Oregon Senator Ron Wyden has a new hedge fund in his basement. And on the second-floor of his Washington home.But the fund isn’t his — it’s his son Adam’s.
Adam, who’s 26, just launched ADW Capital Partners from the family home after an internship with D.E Shaw’s $700 million long-short tech group in 2005, Bloomberg reports.
Apparently it’s extremely rare for college kids to “get to intern on a D.E. Shaw portfolio for the summer,” said Brian Marshall, who used to run the fund.
But a D.E Shaw spokesperson assured Bloomberg, “Adam went through the same rigorous vetting and interview process as all other D.E. Shaw group interns.”
The reason observers might think otherwise is because David Shaw has donated thousands of dollars to Senator Wyden’s election and re-election campaigns in 2004 and 2010. Shaw and his wife each gave the maximum $4,800 each that they’re allowed to donate for any single election cycle, to Wyden.
Shaw also contributed $5,000 in 2010 to Holding Onto Oregon’s Priorities, a political action committee established by Wyden, according to Campaignmoney.com
But Adam is well-qualified. His resume resembles that of a ton of hedge fund whiz kids.
He has an MBA from Columbia Business School, and before that, attended Wharton. At Penn, while he was earning degrees in economics and management, he was also already trading stocks for his own account. After his stint at Shaw’s $19 billion fund, he worked for two years at SMH Capital.
According to his Facebook page, he likes The Powder Kegs (music-wise); Forbes (media-wise); Carl Icahn (investor-wise); and Theory (clothing-wise).
He also seems to like basements. He was once quoted in the Daily Pennsylvanian talking about a party that goes on everynight in the basement of Penn’s Van Pelt library, where the reserve collection is held, called “The Rosenparty.”
[S]pending considerable amounts of time in Rosengarten is anything but boring. Wharton junior Adam Wyden calls the atmosphere “quasi-cultish.” Wyden and his friends don’t just go there to study at night. They go to be seen.
His new $3 million firm is modelled on the investment partnership that Warren Buffett ran prior to buying Berkshire Hathaway, both in terms of “philosophy and structure” and will charge annual fees of 2 per cent, with 20% of profits.
ADW seeks to produce high risk-adjusted returns through “conservative equity investing” in small, under-followed businesses in the U.S., Canada and Western Europe.
Wyden’s best personal trade last year was an investment in IDT Corp. starting in February, when the Newark, New Jersey, telecommunications company traded at an average of $4.84 a share, he said. IDT now is at $23.90.
“Right now it’s just me,” he told Bloomberg. “I am the CEO, I am the secretary, and I am the chief marketing officer.”