A spokesman for the bank told Reuters that the 35-year-old will depart early in the second quarter of 2009 after 11 years.
Mr Weinstein will be joined at the new investment pool by around 15 members of his Deutsche Bank team, the representative added.
Deutsche Bank said it has no plans to replace Mr Weinstein. Instead, the division will become the sole responsibility of its other co-head of global credit trading, Colin Fan.
The announcement of Mr Weinstein's departure comes after the bank's chief executive Josef Ackermann said it would be moving its assets away from industrial sectors unlikely to see a recovery in near-term, the site said.
According to the latest figures from EurekaHedge, Mr Weinstein will enter a market battered by last year's market turbulence. The analyst says the global hedge fund industry lost $350 billion during 2008 - around 20 per cent of its total value.