D.E. Shaw, the quantitative hedge fund powerhouse managing over $90 billion in assets, is doing something that sounds counterintuitive in an industry obsessed with gathering more capital: telling investors to stop sending money.
The New York-based firm is closing its Valence and Multi-Asset hedge funds to new investments, effective at year-end. Both funds held less than $10 billion each in external capital. At the same time, D.E. Shaw is tightening the exit doors on its two flagship vehicles, making it harder for existing investors to pull their money out.
The details behind the closures
Investors in the Composite fund will now be limited to withdrawing just 6.25% of their capital per quarter. Do the math and that means a full exit takes roughly four years. For the Oculus fund, the cap is slightly more generous at 8.3% per quarter, translating to about a three-year timeline for a complete withdrawal starting January 1, 2027.
The firm has also paused profit distributions, choosing to retain gains within the funds rather than ship them back to investors.
