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Beverly Chandler, Opalesque London: Research firm Preqin has conducted an in-depth investor study on hedge fund terms and conditions in this month's Hedge Fund Spotlight. The firm examined how fund terms are changing to favour the investor; whether fee structures are being affected in the current climate and investors' concerns around transparency and liquidity. In the same issue, they also explored the latest trends in hedge fund manager fee levels, looking at the breakdown of fees by fund structure; the difference in fees dependent on location and strategy and the future outlook for hedge fund fees.
For terms and conditions of hedge funds, Preqin’s survey found that there have been continued shifts in favour of institutional investors, with 60% of investors interviewed
agreeing that the interests of investors and managers are properly
aligned and an additional 14% of investors strongly agreeing with
this statement.
Preqin’s research also found that the traditional 2&20 fee structure has come under increasing
pressure over recent years, with many investors seeking reduced
fees. Managers have responded to this
increase in investor pressure, as half of investors interviewed
noted an improvement in the management and performance fees
offered by fund managers in 2012.
Preqin writes: "In particular, the proportion
of investors observing an improvemen...................... To view our full article Click here
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