Hedge Funds
D.E. Shaw assets reach a record $125bn as flagship adds tech fee and longer lockups
The quant giant is up from $98bn at the start of the year, with a $6bn raise for its first human-led fund and investor lockups stretching to four years.
HedgeWeekly Hedge Fund Desk ·
D.E. Shaw's assets under management have climbed to a record $125bn, from $98bn at the start of 2026, according to a Hedgeweek report on Tuesday that cited Bloomberg. Roughly $90bn sits in hedge fund strategies, $30bn in its long-oriented business and $5bn in private investments.
The flagship Composite fund returned 15.3% through September, while the smaller Oculus strategy gained 30%. Composite investors now pay a 0.12% technology surcharge, introduced this year, on top of a 3% management fee and 35% performance fee, and lockups run as long as four years.
The firm raised about $6bn for Cogence, its first fund led by human portfolio managers, and will launch an employee-focused vehicle in January 2027, with half its initial capital coming from Composite. Hedgeweek also reported that D.E. Shaw has avoided highly leveraged Treasury basis trades because of their risks in extreme volatility. Whalesbook separately reported the surcharge, lockup and Cogence details.
For allocators, the numbers show how far the largest platforms can set terms: higher pass-through costs and multi-year capital commitments are being accepted alongside strong returns. The move also underlines rising technology spending as a competitive cost for quant and multi-strategy managers.