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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......................

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