D.E. Shaw to Close $5 Billion Lithic Fund to New Investors

D.E. Shaw is preparing to close its Lithic strategy to new investors, potentially as soon as next month, according to people familiar with the matter. The strategy currently manages more than $5 billion. The firm has not publicly disclosed the decision and declined to comment.

The change is part of a wider capacity-management effort at the New York-based firm, which oversees over $90 billion in assets. People familiar with the matter described the aim as preserving Lithic’s flexibility and maintaining execution quality as assets grow.

Lithic, launched in 2022, combines systematic global single-stock exposure, systematic macro trading and discretionary opportunistic trades. The strategy includes tail-risk hedges designed to reduce losses during periods of severe market stress.

D.E. Shaw has already restricted access to some flagship multi-strategy vehicles. Composite and Oculus are closed to new capital and are lengthening redemption periods. The firm has also closed smaller funds, including Valence and its Multi-Asset Fund, as part of a consolidation of its lineup.

Other large managers have been restricting new subscriptions to preserve trading flexibility and to limit dilution of returns as assets grow. For managers running complex, multi-strategy portfolios, tighter capacity controls can help keep risk exposures and operations aligned with strategy design.

The planned halt to Lithic inflows has not been announced publicly and may take effect next month, the people familiar with the matter indicated. D.E. Shaw declined to comment when approached.