DE Shaw, the $US32 billion hedge fund titan,
has shut its doors to new investors.
The Financial Times’ Sam Jones reports that quantitative easing, bank deleveraging, and trading desk closures have made hedge funds far less profitable than they have been in recent years. DE Shaw was no exception, and is now looking to safeguard returns. From the FT:
Last year, DE Shaw’s flagship Oculus fund made its clients a 20 per cent return on their capital. In 2011 the fund returned 18 per cent. Performance this year has been more modest, said an investor, who declined to give a precise figure because it is protected by confidentiality agreements.
“DE Shaw’s Oculus and Heliant funds were closed earlier this year and the firm’s flagship multi-strategy fund, Composite, was closed at the end of the summer, according to people familiar with the matter,” Jones reports.