Sat, Jul 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund managers feeling the heat over fees - reports

Monday, April 29, 2013

From Precy Dumlao, Opalesque Asia – Maturing industry, changing investor base, financial crisis and regulations are adding pressures to hedge fund managers to rethink their "2 and 20" fee structure, according to a report by the Financial Times.

The traditional hedge fund investors, the wealthy individuals and private banks, have now been replaced by institutions which are more sophisticated and are questioning the fee structure due to regulatory and investment structure, Erich Schlaikjer, co-founder of $5bn quant fund Cantab Capital Partners, told the FT.

He was quoted as further saying, "Australian superannuation funds, as an example, are unable to pay the industry standard fees of two and 20. Investors are also used to paying less for scalable strategies; for example those investing in large-cap equities."

The report also quoted a recent study by Deutsche Bank which showed that 66% of pension funds raised their hedge fund portfolios last year, compared to just 19% of private banks, an indication that the trend would likely continue.

Last month, the U.S. Securities and Exchange Commission (SEC) announced it would scrutinize fees charged by hedge funds and other alternative investment managers that could further put pressure on hedge fund fees.

According to a report by ......................

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: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner