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Lehman Takes Shaw Stake

The news comes as Lehman shares sink.



has purchased 20% of hedge fund D.E. Shaw.

D.E. Shaw, run by David Shaw, offers a variety of alternative and long-only products, which will add to the investment bank's ongoing strategy to beef up its platform for alternative products.

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Lehman also has minority interests in other alternative asset management firms, including GLG Partners, Marble Bar Asset Management, Ospraie Management and Spinnaker Capital Group.

D.E. Shaw has recently been linked to companies like homebuilder

WCI Communities


in which it recently purchased a stake. D.E Shaw Valence Portfolios is a part of a group of shareholders looking to replace video-game publisher


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CEO Paul Eibeler.

Lehman did not disclose how much it paid for the stake in D.E. Shaw.

Lehman is not the only firm bulking up its alternative asset management platform. In the past year,

Morgan Stanley

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has been aggressively buying into several U.K. hedge funds.

Shares of Lehman fell $3.02, or 4%, to $73.53.