Peter Muller

Peter Muller holds degrees in mathematics from Princeton University. He joined Morgan Stanley in 1992 to lead the Process Driven Trading (PDT) group, initially a small research effort applying statistical models to equity markets. Over 20 years, Muller transformed PDT into one of the most profitable proprietary trading operations on Wall Street, generating consistent returns with very high Sharpe ratios through equity statistical arbitrage and quantitative strategies. PDT operated with extreme secrecy within Morgan Stanley, and its annual profitability was the source of considerable internal prestige. When Morgan Stanley began winding down proprietary trading following the Volcker Rule's passage, Muller spun PDT out as an independent hedge fund — PDT Partners — in 2012. The fund launched with over $10 billion in assets, the largest hedge fund spin-out from a major bank at that time. PDT Partners continued the statistical arbitrage strategies that made the Morgan Stanley desk famous. Muller is notable among top hedge fund figures for his eclectic interests: he is an accomplished musician, has released jazz and folk albums, and competes in poker at a professional level. He embodies the archetype of the mathematician-trader who applies rigorous quantitative methods to achieve consistent edge in liquid equity markets.