D.E. Shaw Is to Buck Industry Trend With 3-and-30 Fees
- Pioneering firm’s flagship hedge fund is costlier than most
- The industry’s traditional 2-and-20 model has come down
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D.E. Shaw & Co. is making it more expensive for investors in its biggest hedge fund, raising fees while many of its rivals have been forced to slash them.
The New York-based investment firm is reverting to a fee model that it held for the better part of the 2000s, according to a person with knowledge of the matter. The new structure will charge 3 percent of assets and 30 percent of profits and will take effect at the start of next year.