Pass the fees, please
Nov 18th, 2009 | Filed under: Investment Management Fees, Today's Post
If you could simply backspace and delete all the red racked up in 2008, 2009 would be seen as one of the best years ever for the hedge fund industry.
Yet despite the great returns, most hedge fund managers are still “substantially” below their high water marks, with little likelihood of rising above them this year, according to the latest Bank of America / Merrill Lynch Hedge Fund Monitor. In others words, they’re building up quite an appetite for performance fees.
“Based on a very optimistic scenario (greater of the rate at the 90th percentile of monthly historical returns or their 2Q09-3Q09 monthly pace) we estimate most strategies will take four to eight months to get back to their high water marks,” noted report authors Mary Ann Bartels and Shan Hasnat. More…
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