Wed, Apr 23, 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. …And Finally – Flight attendant has passengers rolling in aisle[more]

    From Orange.co.uk: A video of a US flight attendant turning her safety talk into a comedy routine is proving a huge hit online. More than five million people have watched the clip of Marty Cobb which has her passengers rolling with laughter on a Southwest Airlines flight to Salt Lake City.

  2. Niche Investing – Wealthy investors flock to fine art funds[more]

    From Clickorlando.com: Wealthy investors looking to diversify beyond stocks and bonds are now turning to an unusual money-making vehicle -- the art investment fund. The name says it all: These funds invest in fine art and seek returns by acquiring and selling high-end pieces for profit. Growth

  3. University of Michigan allocates $242m to six managers[more]

    From PIonline.com: University of Michigan, Ann Arbor, invested or committed a total of $242 million to one traditional equity manager and five alternative investment funds from its $9 billion endowment. University regents approved the hire of Mittleman Investment Management to run $35 million in act

  4. Performance – Odey flagship hedge fund suffers brutal March as shorts rise, Blackstone first-quarter profit rises 30% on higher fees[more]

    Odey flagship hedge fund suffers brutal March as shorts rise From Valuewalk.com: The tide has turned for the worse for one of Europe’s best performing hedge funds. Crispin Odey’s flagship hedge fund, Odey European has suffered a 4.63% decline for the year after slipping 7.2% in March, ac

  5. Agecroft Partners estimates 90% of hedge funds using social media[more]

    The use of social media has increased significantly within the hedge fund industry over the past couple of years. Social media is broadly used by investors as part of their due diligence process on hedge funds, by service providers in their sales efforts to hedge funds, and by hedge funds to enhance