Hedge fund giant D.E. Shaw group saw strong returns for its two largest funds in 2021.
The D.E. Shaw Composite Fund, the firm’s flagship fund, generated an estimated net return of around 18.5 percent in 2021, just short of its 19.4 percent return in 2020, according to a source familiar with the firm’s results. The firm’s Oculus Fund, a macro-oriented multi-strategy fund, saw estimated net returns of around 15 percent in 2020, down about 10 percentage points from its 2020 figure. Both funds are generally closed to new investors.
While the results remain subject to change, the estimates are based on preliminary results through the end of December.
The firm, which was founded in 1988, oversees approximately $60 billion in investment capital in hedge funds, private investments, and long-only focused strategies. According to the source, the Composite Fund, which invests in an array of strategies across numerous geographies and asset classes, is the firm’s largest fund and has generated an annualized net return of around 12 percent since its inception in 2001.
The Oculus fund is D.E. Shaw’s second-largest fund. Launched in 2004, Oculus has produced an annualized net return of 12.5 percent since its creation. The fund allocates largely to discretionary macro and has never had a year of negative returns.
The firm expects to return full 2021 profits to outside investors in Composite and Oculus.