Hedge fund giant DE Shaw & Co is planning to charge up to 40 per cent fees for its three biggest funds, according to a report by Bloomberg. The increase will make the funds the most expensive in the hedge fund industry.
The report cites an unnamed source as revealing that the $60 billion firm, is planning to raise performance fees for its Oculus, Composite and Valence funds by 5 percentage points starting from July. The new fees for the three funds will be 30%, 35% and 40% of profits, respectively, while the fees payable on managed assets will remain unchanged at 2%, 2.5% and 3.5%, respectively.
DE Shaw last increased the funds’ fees in 2019 with the new increase reportedly needs ti help the firm pay for technology and data infrastructure as well as compensation.
