Investment Management Fees

A Far-sighted View: Fund Alignment Rights Are Wave of the Future

Jun 12th, 2014 | Filed under: Hedge Fund Industry Trends, Hedge Fund Regulation, Hedge Fund Strategies, Investment Management Fees, Today's Post

Guest columnist Rick Ehrhart looks at hedge fund incentive compensation.


The Hedge Fund Fee Conundrum

Jun 1st, 2014 | Filed under: Hedge Fund Industry Trends, Hedge Fund Strategies, Investment Management Fees, Today's Post

Andrew Beer, guest columnist, takes another look at the never-ending debate about hedge fund fees. Do they or don't they justify themselves?


Converting to the ’40 Act and a Checklist

Mar 4th, 2014 | Filed under: Alternative Mutual Funds, Hedge Fund Industry Trends, Investment Management Fees, Retail Investing, Today's Post

Why convert a hedge fund to a mutual fund instead of establishing a stand-alone vehicle available to retail investors that could invest alongside the existing hedge fund?


Insolvent Cross-Border Debtors and the Choice of Forum

Feb 25th, 2014 | Filed under: Insolvency, Investment Management Fees, Today's Post

In June 2010, pursuant to an order of that BVI court, the court-appointed liquidators of a Madoff feeder fund in liquidation in BVI petitioned the bankruptcy court in the Southern District of New York to recognize those proceedings as the foreign main proceeding under Chapter 15.


Fee reduction and alpha generation: Why fee reduction is the purest form of alpha

Nov 14th, 2013 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Investment Management Fees, Today's Post

Guest columnist Andrew Beer looks at fee reduction as an "alpha generator."


The Skorina Report: Fees vs. performance: Jeff Hooke tilts at the public pension windmill

Aug 18th, 2013 | Filed under: Institutional Investing, Investment Management Fees, The Skorina Report, Today's Post

Guest columnist Charles Skorina looks at pension funds and fees and finds....


Moving Into the 40 Act Space: An Offer of Assistance

Aug 8th, 2013 | Filed under: Alpha Seekers, Alpha Strategies, Alternative Mutual Funds, Hedge Fund Industry Trends, Investment Management Fees, Retail Investing, Today's Post

Citi Prime's report has in mind specifically the situation of hedge fund firms that are interested in expanding into the public-offerings space. They have to keep in mind that they'll have a completely different investing audience from that of the QIPs and institutions to which they are accustomed.


An Earnings Report Every Hedge Fund Manager Should Review

Mar 21st, 2013 | Filed under: Hedge Fund Industry Trends, Investment Management Fees, Today's Post

Guest columnist Diane Harrison looks at the future of hedge fund fees.


Fee Pushback in the Palmetto State: A Conversation with Curtis Loftis

Jun 28th, 2012 | Filed under: Institutional Investing, Investment Management Fees, The Skorina Report, Today's Post

Charles Skorina speaks with Curtis Loftis, Treasurer of South Carolina about investment fees.


PwC on Public Pension Managers Who ‘Do’ Hedge Funds

Mar 5th, 2012 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Hedge Fund Strategies, Institutional Investing, Investment Management Fees, Today's Post

The question in 2012 is not whether hedge funds (and other alternative investment vehicles) can attract pension funds, but how they should go about it. Alternatives managers will benefit most from the heightened interest of pension funds if they address the continuing concerns of their pension fund colleagues. For example, pension fund managers are well aware that investment in exotic and illiquid products is something hedge funds do, and they know that these products can help make a quick exit impossible.


Average College Endowment Performance Improves and Size Matters

Feb 14th, 2012 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Institutional Investing, Investment Management Fees, Today's Post

Data on the endowments of institutions of higher learning shows a significant spread between the performance of the largest endowments and the lagging performance of the smaller. The return that endowments received on their use of alternative strategies, too, depends in part upon the size of the endowment doing the investing. Endowments under $25 million in assets under management made only 9.5 percent on this asset class in FY 2011, while those with more than $1 billion in AUM made a 16.9 percent return hunting in the same jungles.


Will the Babble of Many Taxes Scupper Hopes for Merger Mania and Cost Cutting under UCITS 4?

Aug 30th, 2011 | Filed under: Hedge Fund Industry Trends, Hedge Fund Operations and Risk Management, Hedge Fund Regulation, Investment Management Fees, Today's Post

There are high hopes that the new UCITS framework that took effect in July could herald rationalisation amongst Europe’s regulated hedge funds. While tax factors could slow down the process, UCITS has plenty of other growth drivers besides cost savings.


And the debate over fees continues… at least the ’2′ part

Aug 24th, 2011 | Filed under: Investment Management Fees, Private Equity, Today's Post

Fees for alternative investments, particularly for private equity, are a long-standing issue that likely will never be resolved, but investors and managers alike keep trying, according to a recent survey by Preqin.


Study shows alternative investments are a hard way to make an easy living

Jul 14th, 2011 | Filed under: Hedge Fund Industry Trends, Institutional Investing, Investment Management Fees, Today's Post

Institutions continue to favor alternatives as they remain committed to diversifying away from traditional asset classes. The problem, according to Towers Watson's latest survey, is that they aren't necessarily sold on hedge funds, and they certainly aren't thrilled with the price point.


What the wealthy want — and it’s not “synergy”

Jul 13th, 2011 | Filed under: High-net-worth investors, Institutional Investing, Investment Management Fees, Retail Investing, Timely Research, Today's Post

Clients, according to a surprising new report, aren't too keen on alpha at the moment.


Congratulations! You got a raise!

Apr 17th, 2011 | Filed under: Investment Management Fees, Today's Post

Everyone is talking about how institutional investors are beating up hedge fund managers on fees these days. But it seems the empirical evidence suggests otherwise. In fact, dropping fees may be the worst thing a hedge fund can do after a rough patch.


Performance-based compensation: Does size really matter?

Apr 11th, 2011 | Filed under: Investment Management Fees, Today's Post

A new academic paper suggests managers open and close their funds to new investments to keep performance up - and to keep fees flowing in. We wonder whether hedge fund champion John Paulson would agree.


Analysis suggests critic of performance fees dramatically misjudges size of the manager’s slice

Nov 3rd, 2010 | Filed under: Investment Management Fees, Today's Post

Wondering how much of the pie really goes to the manager? Read on.


Think hedge funds face an uphill battle on fees? It turns out that mutual funds may actually have it worse.

Sep 2nd, 2010 | Filed under: Academic Research, Investment Management Fees, Today's Post

Hedge funds are used to taking their lumps when it comes to fees. But at least one noted academic says the mutual fund industry actually has a far bigger problem on its hands.


Report: Median performance fee earned by UK mutual funds that have one is, well, not really an issue

Aug 29th, 2010 | Filed under: Hedge Fund Regulation, Investment Management Fees, Today's Post

A new report by Lipper examines the early impacts of the UK's endorsement of performance fees for mutual funds.


Contrary to popular opinion, research shows that HF managers won’t necessarily go “all-in” to win big

Aug 19th, 2010 | Filed under: Academic Research, Investment Management Fees, Today's Post

Apparently, executives outside of Hedgistan could benefit from mimicking how hedge fund managers get compensated.


Paper recommends money managers “eat your own cooking”

Jul 18th, 2010 | Filed under: Academic Research, Investment Management Fees, Today's Post

Performance fee arrangements can be a dog's breakfast.


Be it resolved: Hedge funds (might) be worth the price

Apr 29th, 2010 | Filed under: Investment Management Fees, Today's Post

The debate over whether hedge funds are worthy of the management and performance fee structures they charge will likely live on in perpetuity, but a recent in-the-flesh pow-wow on the topic has raised some interesting angles on whether hedge funds are worth the price.


Newsreel: Fees – the volcanic ash cloud hanging over Hedgistan

Apr 25th, 2010 | Filed under: AAA Newsreels, Investment Management Fees, Today's Post

Like the ubiquitous volcanic ash cloud story, the hedge fund fee story kind of floats around for a while, then reemerges without warning to steal the headlines.


Survey finds acrimony over fees may be subsiding

Feb 11th, 2010 | Filed under: Investment Management Fees, Today's Post

Sure, pension funds always want to pay lower investment fees. But a new survey reveals that many feel they are getting more value for money now than last year.


High Water Marks: The other hedge fund “lock-in”

Feb 8th, 2010 | Filed under: Academic Research, Investment Management Fees, Today's Post

An academic study finds that the presence of a high water mark can induce the kind of loyalty usually forced upon investors with redemption gates.


Pass the fees, please

Nov 18th, 2009 | Filed under: Investment Management Fees, Today's Post

Still more evidence that hedge fund managers aren't going to climb back above their high water marks for the foreseeable future. The question is how much longer managers will be willing to tough it out.


“1.75 and 21.93″: The new, new, new fee structure?

Nov 10th, 2009 | Filed under: Investment Management Fees, Today's Post

Investors will still cough up for alpha if they think they can get it, but aren't going to be as tolerant paying for beta anymore.


Can of worms? Supreme Court discusses “fair” compensation for fund advisory services

Nov 5th, 2009 | Filed under: Hedge Fund Regulation, Investment Management Fees, Today's Post

According to experts, a case currently before the US Supreme Court will "define the contours of a mutual fund adviser’s fiduciary duty with regard to compensation." Will it impact hedge funds too?


You wanna 20 with that 2?

Oct 1st, 2009 | Filed under: Investment Management Fees, Today's Post

The debate over hedge fund fees is almost as old as hedge funds themselves. It remains to be seen whether the latest market collapse actually leads to a new pervasive fee structure.


Fooled by Fees

Sep 20th, 2009 | Filed under: Academic Research, Investment Management Fees, Private Equity, Today's Post

Can some investors be "fooled" into buying new and unproven private equity funds?


The High Water Mark(et): A potential lifesaver for underwater HF investors

Sep 14th, 2009 | Filed under: Investment Management Fees, Today's Post

Now the performance fee holiday doesn't have to end just because you sold your losing hedge funds.


HF fee squeeze: Not such a new thing

Jul 21st, 2009 | Filed under: Investment Management Fees, Today's Post

Although newly emboldened investors seem to be pushing fees below the mythical "2 and 20" level, research has shown that fee pressure has been at work in the hedge fund industry for some time.


What really drives the closed-end HF discount?

Jun 25th, 2009 | Filed under: Academic Research, Investment Management Fees, Today's Post

Do premia and discounts on closed end hedge funds actually reflect anything about the funds themselves or do they just a response to exogenous factors?


Study looks at differences between institutional and retail mutual funds

Jun 17th, 2009 | Filed under: Academic Research, Investment Management Fees, Today's Post

Retail mutual funds have been researched in every conceivable way. But we were surprised to learn that institutional mutual funds haven't undergone the same level of scrutiny. Until this year.


Closed-end HF Pricing: Rational Irrationality

Jun 15th, 2009 | Filed under: Academic Research, Investment Management Fees, Today's Post

If hedge funds are supposed to be so unique, then why do most closed-end HFs sell at a discount or premium to NAV at the same time?


Net effect of HF redemption/re-allocation cycle: billions in additional fees

Jun 9th, 2009 | Filed under: Investment Management Fees, Today's Post

Like water in a bathtub, assets seem to slosh in and out of the hedge fund industry frequently. Unfortunately for investors, this can scrub under-performers clean of their requirement to provide a performance fee holiday.


Study finds less than third of HFs actually pocket mythical “2 and 20″

Mar 10th, 2009 | Filed under: Academic Research, Investment Management Fees, Today's Post

Most calls for hedge fund fees to change have fallen on deaf ears. But here's one that we think might actually fly.


Performance fees: As old as portfolio management itself?

Jan 20th, 2009 | Filed under: Investment Management Fees, Today's Post

With a new calendar year re-setting the performance fee "clock", the topic of hedge fund fees is once again on the agenda. And history suggests that fees will also be on the agenda for years to come.