DE Shaw & Co, the New York-headquartered tech-driven hedge fund giant, is raising $3bn–$5bn for its new Cogence Fund, marking the firm’s first multi-strategy hedge fund run entirely by human traders rather than algorithms, according to a report by Bloomberg.

The fund, which is due to begin trading on 1 October, is reportedly oversubscribed, with most initial capital coming from existing investors.

DE Shaw has already diversified beyond its quantitative roots, with more than half of its hedge fund capital managed via discretionary strategies. Cogence will rely on fundamental analysis to identify global opportunities across equities and credit, allowing traders to make real-time judgment calls on risk, pricing, and timing.

The launch comes as many large hedge funds remain closed to new money, creating a scarcity of options for investors seeking sizeable discretionary mandates. DE Shaw’s flagship Composite Fund and the macro-oriented Oculus Fund have both largely stayed closed over the past decade. Both funds, along with Cogence, do not charge pass-through fees, while Composite and Oculus have returned over 10% through August 2025.