One of the world’s largest and most profitable hedge funds has reportedly shut its doors to new investors in an effort to keep its assets under management under control.
Financial Times reported that New York-based DE Shaw closed three of its funds, including the firm’s flagship multi-strategy fund, earlier this year. The three funds comprise most of DE Shaw’s $32 billion in assets under management.
The article added that DE Shaw's management team believe it was necessary to start capping the firm’s assets despite “comfortably outperforming” its peers in the same period to safeguard its returns.
Founded in 1988 by mathematician David Shaw, DE Shaw is mainly known for using mathematical and statistical modeling to spot investment opportunities.