Morning Agenda: Hedge Fund Managers Try to Stanch Loss of Investors
ByHEDGE FUND MANAGERS TRY TO STANCH LOSS OF INVESTORS | Hedge fund titans may be used to running their firms like elite clubs, but years of poor performance have forced them to open up admission,
Alexandra Stevenson reports in DealBook.
More big-name investors like MetLife and American International Group have begun to withdraw their money from hedge funds and the investors who stay get a chance to sit dictate lower fees and better terms.
Hedge funds can no longer just operate on a “2 and 20” model, where investors pay fees of 2 percent of assets under management and 20 percent of any gain in any year. Managers are offering lower fees for investors to keep their money in funds and setting performance targets where investors would pay a fee only if they were exceeded. And the favorable terms are not just offered to longtime loyal clients…
Morning Agenda: Hedge Fund Managers Try to Stanch Loss of Investors
