D. E. Shaw Investment Management (DESIM) is a registered investment advisor that manages investments for clients through separately managed accounts and affiliated investment funds. DESIM uses a variety of investment strategies, including systematic strategies based on quantitative techniques, discretionary strategies based on human analysis, and hybrid strategies. The firm's clients are institutions and high-net-worth individuals who meet certain minimum financial requirements.
Fee Structure
DESIM charges a management fee based on the value of the assets managed. The fee schedule for managed accounts using DESIM's "Active Equity Strategies" ranges from 0.24% to 0.99% annually, depending on account size, risk level, benchmark index, and investment approach. Fund clients deploying strategies on DESIM’s “Orienteer Platform” are assessed a Management Fee that ranges from 0.78% annually to 1.17% annually. Fund clients deploying strategies on DESIM’s “Lithic Platform” are assessed a Management Fee that ranges from 1.80% annually to 2.35% annually, or a Management Fee that ranges from 1.00% annually to 1.35% annually as well as a Performance Charge of 20% of net profits, subject to a loss carryforward provision. These fees do not include custodial fees, brokerage commissions, or other fees.