D.E. Shaw plans to return billions following high hedge fund gains

Investing.com — D.E. Shaw & Co., a prominent investment management firm, is set to return billions of dollars to its external clients. This decision comes after two of its largest hedge funds, Composite and Oculus, yielded significant returns in 2024.

The firm’s leading multistrategy Composite hedge fund saw an 18% increase in 2024, according to a source familiar with the situation. Oculus, the firm’s second-largest fund, which primarily focuses on macro wagers, skyrocketed by 36%. This marks the highest gain for Oculus since its inception twenty years ago. The source requested anonymity due to the private nature of these details.

The majority of D.E. Shaw’s assets under management, which exceed $65 billion, are invested in these two funds. The firm plans to return half of the profits earned from both Composite and Oculus in the previous year to its clients. Although the exact amount was not disclosed, the returned capital is anticipated to be in the billions of dollars.

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