NASDAQ – Hedge funds’ traditional "2 and 20" fee structure is being eroded by demanding investors who want a better deal.

According to a survey by research firm Preqin released Wednesday, the average hedge fund collects 1.63% for management fees and 17.21% on any performance gains. The industry has long been know for the 2% management fees and 20% performance fees it charges.

"Fees which for years have conformed to the industry standard of "2 and 20" are now being driven down as investors become more powerful in the manager/ client relationship," Preqin said in the report.

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Tags: client relationship, fee structure, hedge fund, hedge funds, investors, management fees, nasdaq, performance-fees, performance-gains

Am Law Litigation Daily – Remember how Linklaters’ representation of Barclays in a suit against Bear Stearns cost the firm its client relationship with JPMorgan Chase? It now looks like Linklaters sacrificed its JPMorgan work for nothing. Bloomberg is reporting that Barclays has dropped its Bear Stearns suit with prejudice.

In an amended complaint filed in June, Barclays blamed Bear Stearns and two since-indicted Bear hedge funds managers for causing Barclays to lose hundreds of millions of dollars it had invested in a Bear hedge fund with assets linked to subprime mortgages. (The fund imploded in 2007.) Barclay’s dismissal notice did not offer any explanation for why it was ending the suit. Linklaters partner Lawrence Byrne, whose name appears on the dismissal notice, did not immediately return our phone call.

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Tags: assets, barclay, barclays, bear-stearns, bloomberg, client relationship, dismissal notice, funds-managers, jpmorgan chase, law litigation, mortgages, prejudice