- Advertisement -

Related

Industry trend confirmed – hedge fund managers offer reduced fees

- Advertisement -

Stockholm (HedgeNordic/BarclayHedge) – A hedge fund survey from alternative investment database provider BarclayHedge, confirms the trend of lower fees in the hedge fund industry. According to BarclayHedge´s July 2017 survey, 36.6 percent of hedge fund managers respond that they currently offer reduced or no fee alternatives to their investors and a further 20 percent plan to offer lower or no fee products in the next 3 to 6 months.

“The hedge fund industry has been under pressure to offer lower fee alternatives for some time,” said Sol Waksman, founder and president at BarclayHedge. “We expect that these pressures will continue and that low or no fee products will continue to grow.”

The BarclayHedge survey was conducted between July 17 and July 28 and received 134 replies from a broad range of hedge funds managers.

In a recent study of Nordic hedge funds, HedgeNordic confirmed that the traditional 2/20 fee structure is far from being the current standard. According to the HedgeNordic study, Nordic hedge funds charge an average management fee of 1.18% and average performance fee of 16.23%. Swedish hedge fund managers charge the lowest fee structure, with an average management fee of 1.07%, and an average incentive fee of 17.12%. Meanwhile, the Finnish hedge fund industry charges the highest management fee (1.48%) and the lowest performance fee (13.82%) throughout the Nordics.

“The mutual interest of Nordic fund managers and investors seems well aligned, thanks to the seemingly low management fee and the much-appreciated high-water mark. The fee structure used by most Nordic hedge funds ensures that fund managers make money only if their investors make money”, the HedgeNordic study concluded.

Picture (c): Christian-Delbert—shutterstock.com

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

Simplicity Completes Norron Deal

Three months after announcing the deal, Swedish asset manager Simplicity has completed its acquisition of Norron’s fund management business, taking over the management of...

Rethinking the 60/40 Portfolio

The 60/40 portfolio remains one of investing’s most recognizable conventions, even where few institutional portfolios literally consist of 60 percent equities and 40 percent...

Diversification That Comes From Somewhere Else

Insurance-linked investments offer something increasingly difficult to find in institutional portfolios: return drivers that are fundamentally different from those behind equities and bonds. At...

Reinforce, Don’t Replace: Carrying the 60/40 Through the Fragile Decade

By Steven Braun at Newfound Research and Return Stacked® Portfolio Solutions: Despite its ambiguous origins, the 60/40 remains the default portfolio for investors approaching...

Varma: Practical Considerations for Embracing a Total Portfolio View

Finland’s Varma is one of several large Nordic asset owners that has been moving towards a more holistic view of the portfolio – some...

Thinking Outside the 60/40 Box: How Active and Dynamic Commodities Can Complement Bonds

Bonds helped investors to diversify equity between about 2000 and 2021, which more than covers the entire career of many allocators. Since 2022 bonds...

Allocator Interviews

- Advertisement -

Voices

Request for Proposal

- Advertisement -