Tue, May 26, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Global hedge funds slicing fees to draw investors

Monday, October 10, 2016

Komfie Manalo, Opalesque Asia:

From Asia to Australia, to Europe and across the Pacific in the U.S., hedge funds across the globe are reducing their management fees in a desperate effort to maintain investors and attract new ones amidst poor returns, Reuters reported citing industry figures.

The report quoted David Saunders, chief executive of K2 Advisors, as saying, "There isn't a manager out there who isn't thinking about lowering fees." K2 Advisers has nearly $10bn invested with hedge funds on behalf of its clients.

Amongst the latest hedge fund to slice its fees is U.S. based Caxton Associates, following earlier announcements by Och-Ziff Capital Management and Tudor Investment Corp to cut charges.

Singapore-based data provider Eurekahedge said there is a growing trend amongst hedge fund managers to cut down on fees. It compiled data from over 2,600 hedge funds in the Americas, Europe and Asia showing that the average annual management fees have fallen to 1.39% this year from 1.44% in 2015 and 1.68% nearly 10 years ago.

Oliver Muggli, partner at multi-family office Mandorit, also commented, "A lot of people invested in hedge funds ... and they've all been rather disappointed about the performance. It's an asset class which probably will face more challenge and more outflows ......................

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. Tiger Global tops the list US-based venture capital market[more]

    Laxman Pai, Opalesque Asia: Tiger Global Management holds on to its position as market-leader in US-based venture capital, said a study. According to Preqin, the closure of tech-focused Tiger Global Private Investment Partners XII in January means the New York-based firm has raised more than

  2. Tech: Fintech startup Brex closes $150m in pure venture funding amid recession[more]

    From Business Insider: Brex, the 3-year-old fintech unicorn, raised an additional $150 million in equity funding from existing investors and Lone Pine Capital, the company announced Tuesday. The cash infusion raised the startup's valuation to "around the $3 billion mark," cofounder and co-CEO Henriq

  3. PE/VC: Venture debt set to take prominent role, Building out Goldman Sachs's private-equity business[more]

    Venture debt set to take prominent role From PE News: Venture debt financing could be having its moment as the equity market becomes less friendly to start-ups. About $10bn worth of venture debt deals were made this year as of 21 April, a pace set to eclipse the roughly $25bn in such de

  4. Study: Emerging market bond issuers take hit as global recession deepens, The coronavirus pandemic could cost the global economy a nightmarish $82tn over 5 years, a Cambridge study warns[more]

    Emerging market bond issuers take hit as global recession deepens Increasing credit stress evident amongst many high-yield EM non-financial corporates as coronavirus disruption takes its toll, says Moody's. 74 out of 106 rated EM sovereigns have a stable outlook as of 30 April 2020 (compa

  5. Investing: Singer bets on Europe, emerging markets, Britain's unhealthy appetite for financial risk in essential services, How Stan Druckenmiller shook up his portfolio[more]

    Singer bets on Europe, emerging markets From Investment Magazine: William Blair's Brian Singer is looking to invest in Europe and the emerging markets as the recovery from the global economic shutdown to contain the pandemic will likely take longer than what the market has priced in.