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PDT Partners Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

PDT Partners, LLC is an investment management firm with more than $11 billion in assets under management (AUM). It manages a total of eight funds - or pooled investment vehicles - and currently employs 72 advisors. It does not manage any funds other than hedge funds.

It's important to understand that hedge funds are often complex, loosely regulated investments and therefore accessible to accredited investors. If you're looking for trusted and comprehensive support in managing your own finances, consider speaking to a professional financial advisor.

PDT Partners Background

PDT Partners was formed in September 2010 and began investment advisory activities in July 2012. The firm, together with its affiliates, developed from Process Driven Trading, a Morgan Stanley trading division founded in 1993.

The principal owner of PDT Partners, LLC is PDT Capital Group, LP that is ultimately controlled by CEO and quantitative trader Peter Muller. Morgan Stanley had held special non-voting membership interests in PDT Partners, LLC but these interests terminated in 2019.  

The firm's only clients are the Funds, or pooled investment vehicles, to which the firm provides investment advice. Some of the firm's Funds are Trading Funds and others are Allocating Funds.

PDT Partners generally requires the accredited investors in its Funds to make a minimum initial investment of $5 million.

PDT Partners Investment Philosophy

According to the firm's website, PDT Partners is at its heart driven by scientific principles and a compassionate culture and does not see itself as a typical finance trading company. The firm uses quantitative investment strategies - involving mathematical models to review data and draw conclusions - in order to provide investment advisory services to its Funds. Many of the firm's researchers hold advanced degrees in mathematics and/or science. Their work consists of developing quantitative models to identify market inefficiencies and predict market movements. After rigorously researching and testing a model, the firm deploy it to run live on its automated trading systems, which can then trade on electronic markets around the globe. 

Using these quantitative models, the firm trades a broad range of liquid, publicly traded U.S. and non-U.S. securities and other instruments - including equities, futures contracts, foreign exchange, and derivatives of those. In limited circumstances, the firm will invest in private securities or other instruments.

Each Fund is managed according to the investment objectives and policies that the firm provides in its offering materials and other documents that govern the way the Fund is handled. Investment strategies vary by assets traded, forecasting technique, risk profile and other factors. PDT Partners monitors the strategies for these Funds at regular intervals and intervenes occasionally in order to reduce perceived risks.

Largest Hedge Funds Managed by PDT Partners

PDT Partners Master Fund I, LLC

  • AUM: $3,988,887,618
  • Minimum: $25 million
  • Beneficial Owners: 128

PDT Mosaic Master Offshore Fund, LLC

  • AUM: $2,973,754,420
  • Minimum: $5 million
  • Beneficial Owners: 36

PDT Mosaic Master Onshore Fund, LLC

  • AUM: $2,835,074,640
  • Minimum: $5 million
  • Beneficial Owners: 53

PDT Mosaic One Fund, LP

  • AUM: $1,160,354,873
  • Minimum: $5 million
  • Beneficial Owners: 2

PDT Partners Portfolio IV, LLC

  • AUM: $738,275,000
  • Minimum: $25 million
  • Beneficial Owners: 7

Fees at PDT Partners

PDT Partners does not have a general fee schedule. Fees are charged by the firm to the fund, not to the clients directly. Management fees at the firm are generally based on the assets under management of each Fund - up to 3.5% per year. Additionally, performance-based fees range from 20% to 50% and subject to what's called a high-water mark, or an all-time high. 

Information regarding actual fees charged to any specific Fund will be listed in the offering documents for that Fund. Management fees are usually paid monthly in advance and performance-based fees are usually paid or allocated annually or semi-annually. PDT deducts fees directly from the Fund assets.

Additional fees and expenses may apply - including but not limited to document preparation or modification fees, third-party fund administration expenses, certain taxes and regulatory expenses - so it is imperative that potential clients reach out about their particular situation.

What to Watch Out For

Again, it's important to understand that hedge funds are often complex, loosely regulated investments and therefore accessible only to accredited investors, who, along with sophisticated investors, are allowed by the SEC to buy securities like these. These two groups of investors differ from retail investors or individual investors, who might be taking a more DIY approach or enlisting the services of a financial advisor

Within the past 10 years, PDT Partners has not undergone any disciplinary or legal action deemed material to a client’s evaluation of its business integrity. That said, as an SEC-registered investment manager, the firm is legally obligated to uphold its fiduciary duty and work in clients’ best interests at all times. You can view its latest Form ADV on the official website of the Securities & Exchange Commission (SEC).

Becoming a Client of PDT Partners

If you are an accredited investor and wish to become a client of PDT Partners, you can visit its website or call (212) 621-0400.

Investing Tips

  • Whether you are an accredited or sophisticated investor or not, it never hurts to consult a professional to make sure you're doing everything you can to manage your finances so that they can work for you. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with financial advisors in just five minutes. If you're ready to connect with local advisors, get started now
  • It's never too early - or too late, for that matter - to start investing. In addition to connecting you with expert advisors, SmartAsset also has various tools to help you get a snapshot of the numbers right now. Take a look at our free investment calculator for a sense of how much a particular investment might be worth as well as its growth over time.

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research