Since the financial downturn of 2007-2008 hedge funds have been under increasing pressure to keep their clients. In 2016 disgruntled investors pulled $70 billion out of hedge funds in response to poor past performance exacerbated by immodest fees. The average management fee paid for a hedge fund investment fell to 1.56 percent in 2017 and …
Tag Archives: fees
Discount Fees Attracts Money to BlackRock Style Advantage Fund
At a time when many, if not most hedge funds are losing assets, one fund has doubled its assets over the past six months. BlackRock’s Style Advantage fund grew to $1.6 billion during the first half of 2017 doing something other funds have been fearful of doing: charging less than the almost sacred 1% management …
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Hedge Fund Fees Falling as Investors Vote with Their Feet
This has certainly been a tough year for hedge funds. Low returns married to high fees have set off alarms as clients re-evaluate the cost-benefits of sticking with alternative fund managers. In response, some of the largest hedge funds have lowered their fees as added incentive to keep their customers in the fold. Brevan Howard, …
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Soros: Fees Make Hedge Funds Bad Investment
According to billionaire philanthropist and former hedge-fund manager George Soros institutions who are heavily invested in hedge funds should expect less-than-optimal performance, partly because managers take relatively high fees. “Since hedge funds are now a dominant force in the market, they can’t, as a group, outperform the market,” Soros said in an interview from the …
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