Hedge Fund Giant D.E. Shaw Plans to Raise Fees as High as 40%
- Performance fees for top funds to rise by 5 percentage points
- Shaw will return a substantial amount of profits at year-end
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D.E. Shaw & Co. is hiking fees for its three biggest hedge funds to as high as 40% -- making them among the most expensive in the industry.
The firm, with about $60 billion under management, is raising performance fees -- its cut of investor profits -- for the Oculus, Composite and Valence funds by 5 percentage points starting in July, according to a person familiar with the matter. Investors will pay 30%, 35% and 40% of profits for the funds, respectively, while the fee on managed assets remains unchanged.