Hedge Funds

D.E. Shaw stops the bleeding

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Lower fees, positive performance, and a more liquid portfolio have helped the firm to stabilize and re-grow assets.

The worst appears to be over for D.E. Shaw.

After a period mediocre performance and billions of dollars in investor redemptions, the quantitatively focused New York firm has stabilized its hedge fund assets, according to a source close to the firm, and managed $15.09 billion as of May 1.

Overall assets, including hedge funds, have stayed between $19 billion and slightly more than $20 billion since October; as of May 1, D.E. Shaw managed a total of $20.40 billion.

Performance in its two largest hedge funds has also been strong. According to an update sent to investors, D.E. Shaw’s Oculus quant