Hedge Fund News From HedgeCo.Net

Hedge funds move away from unpopular ‘two and 20’ fee model – survey

(Reuters) – Hedge funds are ditching the traditional “two and twenty” fee structure that has hurt the sector’s public image and invited criticisms of poor value for money, a global survey of hedge fund managers showed on Wednesday.The ‘two’ refers to the 2% annual management fee charged by fund firms on the assets managed, while the ‘twenty’ refers to the 20% of profits made by the fund above a certain predefined benchmark. The fee arrangement has become increasingly unpopular among some hedge fund clients, who believed they were paying too much upside to managers when bets performed well.

To read this article:

This entry was posted in Syndicated. Bookmark the permalink.

Leave a Reply