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From Kirsten Bischoff, Opalesque New York:

In an industry where just ten to fifteen years ago the general belief was that hedge funds all had a lifecycle and were not constructed to be long-term businesses, there has been a definite shift in attitude. Managers and investors alike today (post financial crisis) value firms that are built to last longer than the market cycles of their strategies. As Merlin Securities points out in a new white paper, "Whereas pre-crisis the top hedge funds were dedicated to performance alpha, post-crisis the top funds also seek enterprise alpha."

Funds target that enterprise alpha by building sound operational infrastructures. Post financial crisis these fixed expenses (which can come at a high cost) have become a significant driver of a hedge fund's ultimate success.

Budgeting these fixed expenses around only revenue from management fees may seem like a highly conservative way to approach running a hedge fund, but it also allows the fund to sustain, adapt, and emerge, advises "The Business of Running a Hedge Fund".

Hedge fund fee structure has long been a topic of debate amongst managers and investors. While we have lately seen pressure on performance fees of hedge funds that have not met investor expectations (......................

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