News that the $21 billion hedge fund DE Shaw had cut 150 employees (10% of its staff) shook up the hedge fund world.
Reuters found a (slightly) scorned source with more information on the cuts.
The source is an investor who’s been trying to get his money out, which tells you something to begin with.
Other reasons layoffs happened are:
- DE Shaw’s Composite International fund is down 2.6% so far this year
- Its assets have dropped from $39 billion in mid-2008 to $29 billion under management in mid-2009, and $21 billion currently. The firm had not yet made staffing cuts.
- Their UK and Dubai units lost $14.23 million last year
- Gating. And they’ve been limiting investors’ access to their cash. One investor said: “My feeling is that they haven’t been rushing to return money to investors. We haven’t seen an investor-friendly process.”