Hedge fund giant D.E. Shaw is planning to slash its fees on illiquid investments.
The Wall Street Journal reported that the New York-based firm told clients it will cut its annual management fee on “side pocket” investments to $1.75% to 2.5%, effective in July. Performance for the firm's side-pocket vehicles has reportedly been flat since its launch in 2006.
The article added that DE Shaw also reduced fees for its main hedge funds in 2011, although it still charges more than the industry average.
Founded in 1988 by David Shaw, DE Shaw has about $32 billion in assets under management.