Hedge Funds

D. E. Shaw to cease offering Valence as discrete strategy


In a radical departure from its roots in equity volatility, D. E. Shaw has decided to stop offering its flagship Valence, a short-term statistical arbitrage fund, as a stand-alone strategy. Investors who wish to retain exposure to Shaw's ace stat-arb engine can roll their capital over to Shaw's Composite multistrategy fund, which has a roughly 30% allocation to the equity and equity-linked strategy.

Valence's historical returns have been impressive, with the fund netting gains in the mid to high teens in both 2005 and 2006. Major market dislocations in August have made this year challenging - and led Shaw