Thu, Sep 29, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

GAIM delegates hear fund of funds fees are increasingly discounted

Wednesday, June 19, 2013

Beverly Chandler, Opalesque London: Reporting from the GAIM conference in Monaco, CooConnect finds that funds of funds are taking action over their fees.

The site writes: "Funds of funds have insisted they are becoming more aggressive at pushing down hedge fund fees despite a recent Goldman Sachs prime brokerage survey indicating a majority of investors still paid full fees."

According to the Goldman Sachs study, 83% of investors paid full fees, while 68% of pension funds – historically the most vocal investor constituent on fees, paid full or non-negotiated fees. Funds of funds, said the study, were the least effective investor class at negotiating reduced management fees. Meanwhile, international law firm Seward & Kissel revealed 90% of investors paid the full 2 and 20 on all non-equity focused hedge fund strategies.

Nonetheless, COOConnect writes that several funds of funds told GAIM delegates in Monte Carlo that their underlying managers were increasingly open to offering fee discounts. "Managers have become more willing to reduce fees, particularly in this low interest rate environment. If we are an early stage investor, we will sometimes pay the full 2 and 20 initially, and if the manager reaches a threshold of $150 million, for example, we will ask for our fees to be cut, sometimes by up to half," said Alex Campbell, investment manager at Culross, the $500 mill......................

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. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  2. Studies - Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements, Cambridge: Look to private investments for best access to LatAm growth[more]

    Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements A new study of the hedge fund space by industry law firm Seward & Kissel LLP reveals a wealth of information regarding established hedge fund managers’ use of side letters—special agreements

  3. Activist News - Caesars 'optimistic' on deal with hedge fund creditors[more]

    From Reuters.com: Caesars Entertainment Corp said on Monday it remains "optimistic" of reaching a $5 billion deal with the bulk of its creditors to push its main operating unit out of bankruptcy, but one hedge fund bondholder said it will pursue litigation. Caesars offered a sweetened $5 billion set

  4. Hedge funds recover from losses as central banks give markets a respite[more]

    Komfie Manalo, Opalesque Asia: The Lyxor Hedge Fund index was up 0.4% from the week ending September 20 (-2.4% YTD), supported by the willingness of central banks to remain accommodative, Lyxor Asset Management said in its weekly briefing. It ad

  5. Perry Capital closing flagship fund after almost three decades[more]

    From Blooomberg.com: Richard Perry, one of the biggest names in hedge funds, is calling it quits after 28 years. Perry, 61, is winding down his New York-based flagship fund as the industry confronts one of the most tumultuous periods in its history. In a letter to investors Monday, he said his style