Sat, Jul 23, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Average hedge fund fee significantly lower than reported

Thursday, February 14, 2013

Beverly Chandler, Opalesque London: Dan Steinbrugge of Agecroft Partners reports that hedge fund industry assets are up slightly from their peak in the third quarter of 2008 but the average fee paid on industry assets has declined much more than reported in industry surveys. "These surveys typically show that the stated fee of the average hedge fund has declined very little over the past five years. However we estimate that the average management fee on net assets received by hedge funds since 2008 is 15% lower than commonly believed. The hedge fund industry is seeing significant fee pressure from many hedge fund investor channels" he writes.

Steinbrugge counts these as managed account platforms, '40 Act funds, UCITS, hedge fund seeding and acceleration companies, first loss investors, founders share investors and large institutional investors. "These various channels have attracted a majority of hedge fund flows since 2008 and represent a growing percentage of the hedge fund industry" Steinbrugge writes and lists them as:

  • Hedge fund platforms, 40 ACT and UCITS funds Since 2008 there has been large demand for increased liquidity and transparency which has driven growth of hedge fund platforms, UCITS funds and '40 Act funds. Hedge fund platforms require a managed account by the manager and usually ask for 50 to 100 basis points fee discount which is used to run their business. This discount is......................

    To view our full article Click here

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. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. Opalesque Exclusive: ArbitrOption outperforms benchmarks, up 7.18% in H1[more]

    Komfie Manalo, Opalesque Asia: Independent registered advisor ArbitrOption breezed through the tumultuous Brexit referendum and outperformed its benchmarks. ArbitrOption was up 7.18% in the first half of 2016 compared to the S&P 500 which gain

  4. Europe - European hedge funds shrink and shutter as turmoil hurts returns, Investors go bargain-hunting for U.K. property after Brexit vote, Brexit: Guidance for fund directors - what to know and what to ask[more]

    European hedge funds shrink and shutter as turmoil hurts returns From Bloomberg.com: Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money man

  5. Platinum Partners starts liquidation of hedge funds following municipal union kickback scandal[more]

    Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New