Sun, Oct 26, 2014
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

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