Wed, Jul 24, 2019
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. Private real estate fundraising nosedives in 2Q 2019, hitting a five-year low[more]

    Laxman Pai, Opalesque Asia: Private real estate fundraising decreased significantly in Q2 2019 from the previous quarter, hitting a five-year low, Preqin said in its quarterly update on real estate. Forty-seven funds reached a final close, raising just $29bn, which marks a sharp decrease fro

  2. Regulatory: SEC reforms open door to BDC market shakeup, Regulatory rollback: First set of Volcker Rule reforms finalized[more]

    SEC reforms open door to BDC market shakeup From Reuters: The US Securities and Exchange Commission's (SEC) fund of funds proposals potentially open the door to a shakeup in the Business Development Company (BDC) market. Under the existing guidelines, regulated funds are prohibited from

  3. Regulatory: New PFIC regs released, relevant to ILS & hedge fund reinsurance strategies[more]

    From Artemis: The U.S. Internal Revenue Service and Department of the Treasury has published a new set of proposed regulations relating to passive foreign investment companies (PFICs), which are relevant to many in insurance and reinsurance, but have particular relevance to certain ILS and hedge fun

  4. Tech: Investors seek an edge by using technology that reads between the lines, Wall Street's tech transformation, Investing in artificial intelligence and automation[more]

    Investors seek an edge by using technology that reads between the lines From Fortune: Ever since British economist JohnMaynard Keynes first declared that investors are prey to people's urge to act,however irrationally, the financial world has tried to quantify the impact ofpublic sentim

  5. Opalesque Exclusive: Structural Alpha Holdings launches to offer hedge funds permanent capital solutions[more]

    Bailey McCann, Opalesque New York: Taussig Capital is launching a new vehicle - Structural Alpha Holdings. Structural Alpha Holdings builds on Taussig Capital's expertise advising hedge funds on how to create banking, insurance, and reinsurance companies to generate permanent capital. St