Oct 8 D.E. Shaw is closing its doors to new
clients, joining other large hedge funds that have stopped
accepting cash into their flagship funds, the Financial Times
reported on Monday.
Oculus, D.E. Shaw's flagship fund, generated a return of 20
percent in 2012, compared to 18 percent in 2011, according to
the FT, while performance this year at the hedge fund has been
more modest, an investor told the paper.
Shaw's Oculus and Heliant funds were closed earlier this
year and its flagship multi-strategy fund, Composite, was closed
at the end of the summer, the FT reported, citing people
familiar with the matter. ()
Some smaller bespoke funds, investing in specialist areas
such as reinsurance or mortgage bonds, will remain open to new
money at the New York-based fund, the FT said.
D.E. Shaw could not immediately be reached for comment by
Reuters outside of regular U.S. business hours.
Many traditional hedge fund strategies have become far less
profitable due to quantitative easing, bank deleveraging and a
tail-off in corporate dealmaking, the FT said, adding that only
two of the largest six hedge funds - Man Group Plc and
Och-Ziff Capital Management Group LLC - are still
accepting cash into their flagship funds.
Hedge fund returns have risen roughly 3.6 percent on average
through July, according to estimates by Bank of America Merrill
Lynch, while the S&P 500 was up 18.2 percent in that period.