---
title: "Hedge funds will take about half of their profits as fees. DE Shaw, Millennium, and Citadel were the most profitable last year"
description: "The fee issues of hedge funds have attracted attention. Research shows that since 1969, nearly half of the $3.7 trillion profits earned by the industry have been taken as fees. Hedge fund fees have ri"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/225517721.md"
published_at: "2025-01-20T07:53:20.000Z"
---

# Hedge funds will take about half of their profits as fees. DE Shaw, Millennium, and Citadel were the most profitable last year

> The fee issues of hedge funds have attracted attention. Research shows that since 1969, nearly half of the $3.7 trillion profits earned by the industry have been taken as fees. Hedge fund fees have risen to 50.4% of profits. Warren Buffett and Bill Gross have criticized these fees. The industry has grown sixfold this century, with managed assets reaching $4.5 trillion. D.E. Shaw & Co. has become the most profitable hedge fund in 2024, followed closely by Millennium Management and Castle Investment

Hedge fund fees have long been criticized for being high. A new study reveals the true cost to hedge fund clients. According to estimates from hedge fund firm LCH Investments, nearly half of the $3.7 trillion in profits earned by the industry since 1969 has been taken as fees by hedge funds. With the surge in assets, hedge fund fees have risen to 50.4% of profits, compared to about 30% in the early 2000s. Warren Buffett once described these fees as "incredibly compensation schemes," while Bill Gross, co-founder of PIMCO, referred to them as "massive extortion." Research firm HFR noted that the industry has grown sixfold this century, managing a record $4.5 trillion. "The financial crisis of 2008 provided hedge funds an opportunity to reset the way they charge investors," said Rick Sopher, chairman of LCH. D.E. Shaw & Co. became the most profitable hedge fund in 2024, followed by Izzy Englander's Millennium Management. Ken Griffin's Citadel Investment ranked third

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
