Hedge Fund Giant D.E. Shaw Plans to Increase Fees as High as 40%

D.E. Shaw & Co.is hiking fees for its three biggest hedge funds to as high as 40% -- making them among the most expensive in the industry.

The firm, with about $60 billion under management, is raising performance fees -- its cut of investor profits -- for the Oculus, Composite and Valence funds by 5 percentage points starting in July, according to a person familiar with the matter. Investors will pay 30%, 35% and 40% of profits for the funds, respectively, while the fee on managed assets remains unchanged.

A spokeswoman for the New York-based firm declined to comment. ...