D.E. Shaw Pauses Cash Returns as Hedge Funds Soar Up to 28%

D.E. Shaw & Co. will refrain from handing back any cash to clients despite double-digit returns at its main hedge funds in 2025, departing from its yearslong practice of returning profits to control asset growth.

The money manager’s flagship multistrategy Composite hedge fund gained an estimated 18.5% last year, according to a person with knowledge of the matter. Oculus, its second-biggest fund that’s mostly into macro wagers, made an estimated 28.2%, the person said, asking not to be identified because the details are private.