Fri, Oct 24, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The matter of hedge fund fees

Thursday, November 11, 2010

Benedicte Gravrand, Opalesque Europe.

There was much debate about hedge fund fees at Terrapinn's Hedge 2010 London conference on Tuesday. The 2 and 20 structure has become norm over the past years and has been brought into question since 2008, when most hedge funds failed to deliver what the high fees were for, that is, uncorrelated returns.

Opalesque is here reporting commentaries from Millennium's Israel Englander and GLC's Caroline Hoare, as well as from some major investors.

Izzy on fees "Is the power shifting back to the hedge fund manager?" asked Israel Englander, Chairman and CEO of Millennium Management, at the conference. "My response is; it is not about the transfer of power... For twenty years, nothing has changed; we get paid on performance."

Englander said that Millennium, which is head-quartered in New York, had been adding a lot of transparency for its investors of late. The firm has also increased controls and oversights (they now do two audits each year), invested in state-of-the-art technology, and built a strong management team to help run the place. Englander, who switched from trading to management, enjoys getting out more, and not spending entire days in front of computer screens. "We also have an Investor Day," he added.

Twenty years a......................

To view our full article Click here

Banner

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t