The famous hedge fund is brazenly raising the success fee of its most popular funds


As of July 1, the hedge fund with approximately $60 billion in assets under management Increases performance fees by 5 percentage points (a success fee for outperforming the benchmark) for the Oculus, Composite and Valence funds, according to a person familiar with the matter. Investors pay 30%, 35% and 40% of the profit, respectively, after the fundswhile the fee paid for managed assets remains unchanged.

DE Shaw has achieved double-digit returns on the three assets so far last year and in 2022. The Composite fund, the company’s largest hedge fund, rose by 20.5% until August this year, said the person speaking to Bloomberg.

The fee increase will be the second since 2019, when DE Shaw increased the fund management fee from 2.5 and 25 to 3% and the success fee to 30% for the Composite fund. The fund manager DE Shaw also plans to return a significant profit to the investors of all three funds at the end of the year, but the exact amount has not yet been determined, said the person. The Composite and Oculus funds returned all profits to investors at the end of 2021.

DE Shaw was founded in 1988 by computer scientist David Shaw and pioneered quantum trading, which applied complex algorithms to investments. It has since evolved to include human-driven trading and private equity.

Cover image: Shutterstock


Source: Portfolio.hu – Befektetés by www.portfolio.hu.

*The article has been translated based on the content of Portfolio.hu – Befektetés by www.portfolio.hu. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!