- Advertisement -
- Advertisement -

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

First Non-Swedish Family Office Investment for Protean Small Cap

Stockholm (HedgeNordic) – About one year after the successful launch of their long/short equity fund Protean Select, Pontus Dackmo and Carl Gustafsson introduced a...

Atlant Högräntefond Leads Peers on Third Anniversary

Stockholm (HedgeNordic) – Around mid-March 2021, Swedish hedge fund boutique Atlant Fonder launched a UCITS-structured fixed-income fund investing in Nordic corporate bonds, drawing from...

Rhenman Welcomes Brummer & Partners Sales Veteran

Stockholm (HedgeNordic) – After close to 18 years as an institutional sales professional at Brummer & Partners, Tom Josephson is set to join healthcare-focused...

Untapped Potential in Symmetry’s Small-Cap Portfolio

Stockholm (HedgeNordic) – Small-cap-focused hedge fund Symmetry Invest has achieved an annualized return of around 20 percent over the past five years and over...

Navigating Asia-Pacific’s Transition to Sustainable Growth

Stockholm (HedgeNordic) – Emerging markets in the Asia-Pacific region, such as China, India, Indonesia, the Philippines, Thailand and Vietnam, have experienced significant economic expansion...

The Performance of US Equities in Election Years Over the Last Century

By Daniel Ung, Kartik Chawla, and Jędrzej Miklaszewski – SPDR: The 2024 US presidential election is on the horizon, and investors are keen to...

Allocator Interviews

Latest Articles

In-Depth: Emerging Markets

Voices

Request for Proposal

- Advertisement -