New Hedge Fund Cutting Fees in Challenge to Tradition

January 23, 2013 James Heinsman Hedge Fund News

In a move that they hope will begin a new outlook towards fees, the new Core Macro fund being launched by Cantab Capital will utilize similar strategies to some of the world’s largest hedge funds, but at a fraction of the cost to investors.

Cambridge-based Cantab is snubbing its nose at the standard fee-scale of “two and twenty”; two percent of the annual amount of capital invested and a whopping 20 percent of profits. Cantab is going to charge a much more reasonable fee of 0.5 percent of capital invested and only 10 percent of profits.

“We are seeing a substantial increase in institutional allocators investing directly in hedge funds and they are typically the most fee-sensitive,” said Daniel Caplan, European head of global prime finance at Deutsche Bank. “A key focus is not paying for returns that are purely correlated to market moves – investors can access that more cost-effectively elsewhere.”
 

Cantab Capital, Core Macro, Daniel Caplan,

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