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Alternative Market Briefing Weekly

Opalesque Roundup: Investors shocked as research finds hedge-fund fees eat up more than 50% of gross gains: hedge fund news

Saturday, January 25, 2025

In the week ending January 24th 2025, LCH Investments estimated that of the $3.7 trillion in profits they have earned as an industry since 1969, nearly half or a staggering $1.8 trillion was gobbled up as fees. With soaring assets, hedge funds have raised their charges to 50.4% of gains, up from the roughly 30% they earned until the early 2000s.

Top 20 hedge funds of all time returned 13% last year, LCH says. The top 20 hedge funds of all time outperformed their rivals last year. But they still trailed a simple 60/40 model that is far less expensive. LCH Investments released its annual list of the top 20 money managers of all time, who have made $855 billion cumulatively and $94 billion last year for their investors.

Meanwhile, Citco reported that hedge funds finished 2024 with another quarter of positive returns as most strategy types delivered further gains. Extending their run of positive performance to nine consecutive quarters, funds achieved an overall weighted average return of 2.8% in Q4, with 64% of funds in the green.

In new launches, former Millennium portfolio manager Robert Bonte-Friedheim is launching a London-headquartered equity hedge fund; Croatia's financial services regulator, Hanfa, said on Wednesday it gave the green light to alternative investment fund manager Inspire Investments to launch a hedge fund, and hedge fund giant Marshall Wace and Alt Ucits platform Lumyna Investments have broadened their cooperation in the alternative investment space - London-based group is set to move its Ucits products from Ireland to Luxembourg, placing them under a new fund umbrella called Lumnya Luxembourg Sicav.

In the meantime, global alternative investment manager Ares Management Corp. has amassed a €30 billion ($30.7 billion) pool of capital for its latest European direct lending fund , the largest of its kind eve......................

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