London Hedge Fund Offering Discount to Bring in Clients

May 17, 2020 James Heinsman Hedge Fund News

Selwood Asset Management, a $3.5 billion hedge fund and one of the fastest-growing funds in London, has set up a seductive fee structure not seen since the last collapse of the financial markets.

The company will not take a share of the profits some of its new clients make until the net asset value of its main fund climbs back up to its previous high value. Selwood will allow new investors to hold on to all their profits until the fund gets back up to what is sometimes called the “high-water mark.

Specifically, it means the firm will not be taking a performance fee until the fund gains 8%. That is a big saving in fees, which usually range for Selwood from 13.5% to as high as 30% for its flagship fund.

Selwood wants to entice new money, as much as $250 million, so it can take advantage of new trading opportunities caused by the coronavirus market crash. New investors will have to be willing to give Selwood control of their money for a minimum of 12 months.

Selwood opened its fund in 2015 with $85 million, and now has an AUM of about $3.5 billion.

Selwood Asset Management,

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