Sat, Dec 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers March 2013

Focus - Time to take a second look at your fee structure?

Hedge fund fees are much talked about these days and usually subject to condemnation. Indeed, lukewarm hedge fund returns since 2008 have prompted observers to decry their high fees.

To quote an example, Forbes recently wrote: "In 2012, prominent hedge fund managers made headlines by successfully trading against JPMorgan Chase & Co., spending lots of money to influence the U.S. presidential election, and proclaiming that a nutritional supplements company was operating a pyramid scheme. While they made plenty of noise, very few of these traders managed to beat the U.S. stock market after charging their investors rich fees." And The New York Times observed: "In September 2012, the average hedge fund still charged 1.6% annually in management fees and collected 18.7% of any gains, according to data provider Preqin. Through November of that year, the average global hedge fund investor earned just 2.6%, according to ... Hedge Fund Research. In 2011, investors lost nearly 9%. The average annual return from 2009 to 2012, supposedly recovery years following the losses of more than 20% in 2008, was a measly 3%."

George Soros

Hedge fund honchos are critical too. George Soros, who does not need an introduction, said during the recent World Economic Forum in Davos that hedge funds cannot beat the market partly because there are so many of them and also because their fees are eating into their profits. Cliff Asness, founder of qua......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und