|
|
Jason Adler From Kirsten Bischoff, Opalesque New York:
As much as institutional investors have been pushing hedge funds for fee breaks on large allocations, managers that can boast strong track records through the financial crisis are testing the limits of fee structures. This push and pull scenario is playing out throughout the industry, with institutional investors refusing to pay high management fees to "asset gatherers" (which makes their flocking to mainly the largest funds a questionable strategy), and mid-sized hedge fund managers struggling to make their management fee budgets expand in order to put institutional quality infrastructures into place.
Recently, Opalesque learned that New York-based Alphabet Partners, which runs a global volatility arbitrage hedge fund that has returned +115.53% (+24.53% annualized) since its launch at the beginning of the financial crisis (October 2007), and that has grown to approximately $280m in assets, has restructured the fees on its fund. The firm has also announced less restrictive liquidity around investments, and in a move that many funds in asset raising gear have done – have rescinded the ability to side pocket investments in the case of another liquidity crunch.
Previously, the firm’s performance fee was 20% and the management fee was not limited to a percentage, but rather termed "expenses" and meant the fund paid all expenses including trader compensation and over...................... To view our full article Click here
|
|
RSS
