- Advertisement -

Related

Hedge funds becoming more flexible on fees

- Advertisement -

Stockholm (HedgeNordic) – According to a recent study by industry data provider Preqin, hedge fund managers view investor demand over fees as a key driver of change this year.

Preqin, which surveyed 276 hedge fund managers late last year for the poll, found that hedge fund managers are responding to high-profile redemptions and allocation changes with changes to fee structures. A full three-quarters of those polled are willing to reduce their fees, and many intend to spend more on marketing in the year ahead in an effort to counter broad investor skepticism about the value of investing in hedge funds.

According to Preqin, hedge fund fees are on a downward trend where average management fees dropped to 1.51% among funds incepted in 2016, down from 1.57% in 2014 and 2015. Ten percent of managers said they are prepared to reduce performance fees, 37% would reduce their management fees, and 27% are open to reducing both. In contrast, 26% of managers said they were not prepared to reduce their fees.

While 55% of institutional investors believe management fees improved over 2016, more than three-quarters (76%) believe that the area needs further improvement over 2017, the Preqin study suggests.

In a comment, Amy Bensted, Head of Hedge Fund Products for Preqin says:

“Investor dissatisfaction shows no signs of abating in early 2017, and it is clear that addressing investor pressure around performance and fees will be the key challenge for hedge fund managers in the year ahead. Managers will be looking to build on high returns to restore confidence in the asset class as a whole, revive investor sentiment and begin reversing the trend of outflows from hedge funds.”

Picture (c): shutterstock-Davi-Sales-Batista

 

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Jonathan Furelid
Jonathan Furelid
Jonathan Furelid is editor and hedge fund analyst at HedgeNordic. Having a background allocating institutional portfolios of systematic strategies at CTA-specialist RPM Risk & Portfolio Management, Mr. Furelid’s focus areas include sytematic macro and CTAs. Jonathan can be reached at: jonathan@hedgenordic.com

Latest Articles

Norselab Turns to Shipping and Energy for Its Fourth Credit Fund

Norwegian boutique Norselab Credit Management is launching its fourth fund in less than four years, expanding its credit platform into the highly cyclical shipping,...

Ridge Capital Builds Out Investment Team

Stockholm-based boutique manager Ridge Capital has strengthened its investment team with the appointments of Oliver Eliassen as Senior Portfolio Analyst and Olivia Berg Wadsten...

The Dollar, Equity Flows and the Hidden Risks in Institutional Portfolios

By Bul Ekici: AI has turned U.S. equities into a magnet for foreign capital. Once hedge ratios are taken into account, this channel matters...

Asset Adviser Appoints Frank Sørensen as Senior Strategist

Danish boutique asset manager Asset Adviser has appointed Frank Sørensen as Senior Strategist, less than a year after Stonehenge Fondsmæglerselskab, the Danish asset manager...

Elo’s Hedge Funds Stand Out in Strong First Half

Finland’s pension investors are entering a new phase as regulatory changes allow them to increase their equity exposure and raise long-term return expectations. For...

Agmentum Maritime Adds to Portfolio Management Team

Agmentum Capital, the asset manager behind the shipping-focused equity long/short hedge fund Agmentum Maritime, has strengthened its portfolio management team with the appointment of...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -