D.E. Shaw Raises $2 Billion for Flagship Hedge Fund
D.E. Shaw Raises $2 Billion for Flagship Composite Hedge Fund
(Bloomberg) -- D.E. Shaw, one of the world’s biggest hedge funds, has raised $2 billion in commitments after opening its doors to new capital for the first time in seven years.
The New York-based firm turned away additional investor interest, capping how much it’ll accept at $2 billion, according to a person briefed on the matter. That’s the amount it believes it can put into attractive investments in current turbulent markets, the person said, asking not to be identified because the details are private.
The capital raise is for D.E. Shaw’s $13 billion flagship Composite fund, which fell 0.5% this year through March 20, the person said. The fund trades across asset classes, including fixed income, stocks and asset-backed securities.
The firm, which manages more than $50 billion, declined to comment on performance and fundraising.
D.E. Shaw is one of a slew of firms raising fresh cash in order to take advantage of unprecedented price dislocations across stocks, bonds and commodities. Global markets have had violent swings this month, sparked by the coronavirus pandemic along with an oil price war between Russia and Saudi Arabia.
D.E. Shaw’s more macro-focused Oculus Fund is up 2.5% this year through March 20, the person said.
The firm only accepted cash from existing investors, and will take in the capital starting April 1.
D.E. Shaw was founded in 1988 by computer scientist David Shaw. It’s one of the longest-running hedge funds and among the earliest to use complex mathematical models for trading.
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