D.E. Shaw Cuts Fees After Disappointing Year

Feb 16 2011 | 3:54am ET

D.E. Shaw & Co. will cut its fees by more than 16%, offering a break to investors who pay substantially more than the industry standard two and 20.

The New York-based firm, which manages $19 billion, will cut its management fee to 2.5% from 3% and its performance fee from 30% to 25%, Reuters reports. The move comes after D.E. Shaw disclosed returns of just 2.45% for its flagship last year, less than one-quarter the return of the average hedge fund.

The firm has also been aggressively cutting costs, laying off 150 people, or 10% of its total workforce. D.E. Shaw manages less than half of the $40 billion it ran at its peak in 2008.

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Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…