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Hedge funds have had a broadly “meh” 2022. Returns are roughly flat, and while that’s a damned sight better than you got from an index or Cathie Wood-run fund, it has failed to inspire: Investors have yanked some $150 billion from the industry this year. No wonder, then, that many are closing their doors and few are stepping in to take their place.
In other words: It’s a perfect time to jack your already lofty fees into the stratosphere.
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.
Of course, the firm in question—D.E. Shaw & Co.—isn’t fretting over succession plans or underwhelming performance (or both!) like other hedge funds, so….
D.E. Shaw posted double-digit returns across the three vehicles last year and so far in 2022…. The Composite fund, the firm’s largest, makes quantitative and human-driven bets across assets and geographies and rose 20.5% this year through August….
Hedge Fund Giant D.E. Shaw Plans to Raise Fees as High as 40% [Bloomberg]
Almost 70% Of Hedge Funds Have YTD Outflows As The Industry Sheds $146B [Forbes]
Global hedge fund launches plunge, liquidations rise amid turmoil [Reuters]
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