New York Times – Investors who expected hedge funds to prune fees after a particularly disastrous showing in 2008 may be disappointed by a recent study.
The Wall Street Journal reported that a study compiled by the French fund-of-hedge-funds firm Olympia Capital Management found that for the most part, fees remained steady at the 2,659 funds it analyzed. It also found that only a handful of the firms had shortened the time between one redemption date to the next, or reduced the initial lockup period they place on investors’ capital.
Last year, the average fund lost nearly 19 percent, and investors flooded firms with withdrawal requests. More than $600 billion has been pulled from hedge funds since the peak of the credit boom, leaving the industry to oversee just $1.3 trillion, according to Hedge Fund Research.