D.E. Shaw Cuts Side-Pocket Fees

Feb 28 2014 | 10:16am ET

D.E. Shaw Group will reduce the management fee it charges on side pockets it set up seven years ago.

The New York-based firm will begin charging 1.75% on the illiquid portfolios in July, The Wall Street Journal reports. It is the second such fee cut in three years; in 2011, D.E. Shaw cut its management fee on all hedge funds to 2.5% from 3%.

It is unclear how much of D.E. Shaw’s $32 billion are held in side pockets.

Investors approved the separation of the private-equity-style investments in 2006. Among the assets in the portfolios are wind-energy, wireless-network and specialty-metal companies.

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    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…