Yahoo – Pressure from disappointed investors is forcing hedge funds to roll back their fees, putting the standard charge of 2% of assets under management and 20% of investment profits on the endangered list.
Until a few years ago, most funds were like upscale New York restaurants: Some succeeded, others failed, but almost none cut prices. This pricing power was a product of the tens of billions of dollars that flowed into the industry after the tech meltdown of 2000, when savvy investments by some hedge funds shielded their investors from the drubbing suffered by holders of broad stock funds.
