New York-based hedge fund major DE Shaw is planning to return billions of dollars to external clients after its flagship hedge funds delivered exceptional double-digit gains in 2024, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that the firm’s multi-strategy Composite Fund achieved an 18% return, while its macro-focused Oculus Fund soared 36%, marking its best annual performance since launching two decades ago.
DE Shaw, which manages over $65bn in assets, is expected to distribute roughly half of 2024’s profits from both funds back to investors. Though the exact sum remains undisclosed, the capital return is estimated to be in the billions, reflecting a growing trend among leading hedge funds to cap assets under management to sustain high returns.
In 2023, DE Shaw returned all profits from these funds to clients, despite single-digit gains that year.
The Composite Fund, launched in 2001, has maintained remarkable consistency, posting double-digit gains in 18 of its 23 years and delivering an annualised net return of 12.7%. It invests across a diversified mix of systematic, hybrid, and discretionary strategies spanning asset classes and geographies.
The Oculus Fund, meanwhile, which debuted in 2004, focuses on macroeconomic bets and boasts an unblemished track record with no losing years. It has generated 13.7% annualised net returns since inception.
DE Shaw’s performance underscores the appeal of hybrid strategies that integrate algorithmic trading with discretionary and private equity approaches. Last year, both funds recorded gains across all major strategy types, further solidifying their reputation for resilience and adaptability.
