D.E. Shaw & Co. is reportedly preparing to close its Lithic fund to new money as early as next month, adding to a growing wave of hedge funds turning away fresh capital just as investor interest in the industry appears to be rising. The fund manages more than $5 billion and was launched in 2022, according to people familiar with the matter.
Lithic gives investors exposure to systematic global single stocks, systematic global macro assets, and discretionary opportunistic strategies, while also offering tail-risk protection against rare and extreme market moves. D.E. Shaw, which manages more than $90 billion, declined to comment.
The move could fit into a broader push by hedge funds to limit size and preserve flexibility in trading. D.E. Shaw’s Composite and Oculus funds have already been closed for some time, while the firm is also shutting down Valence and Multi-Asset Fund. Even as allocations become harder to access, institutions such as Abu Dhabi Investment Council are still looking to increase hedge fund exposure as a way to diversify portfolios.