Norwalk Advocate – Some hedge funds are reducing their management and incentive fees to keep investors for longer periods during turbulent times on Wall Street.

Typically, hedge fund managers require investors to lock their money into a hedge fund for a year while charging a 2 percent management fee and keeping 20 percent of hedge-fund profits as an incentive fee – if it reaches a pre-determined point.

Camels Capital LLC, a Greenwich-based hedge fund, and Ore Hill, a New York-based fund, among others, have restructured these terms to keep investors.

"Ourselves, Ore Hill and a few other funds have taken a step to do that in this period of liquidity to lock in investors," said Richard Brendan, chief executive officer for Camels Capital. "We’ve been able to lock in our investors for a period of time to participate in opportunities with them."

Brennan would not comment on the specifics of the agreement between the hedge fund and his investors.

Scott Baker, a principal with Greenwich-based hedge fund investment firm Cookpine Capital, said many hedge funds are coming up with innovative ways to secure investor capital for longer periods.

Read Complete Article

Tags: business-professionals, capital-appreciation, combination-of-the-two, energy-fund, felonies, incomes, investment-firms, investor-relations-staff, multibillion-dollar, mutual-fund, qualitative-assessment, raising-money, sentiment-indicators, spokesperson, threshold, true-state

Houston Chronicle – Boone Pickens, the billionaire founder of BP Capital LLC, said 15 percent of his hedge funds’ holders have asked for the option to withdraw their money after he lost more than $1 billion in energy trades this year.

Pickens, who manages funds linked to energy commodities and equities, said his equity fund has taken a "real hit" as oil company stocks and oil prices have plummeted.

"I feel like all my fingers are mashed in the door right now," Pickens, 80, said on CNBC today. "I’m trying to get someone to open the door for me."

The Wall Street Journal reported last week that Pickens was having his worst performance in 10 years, with his funds losing about $1 billion.

"It’s more than that now," Pickens said.

Pickens said his funds require a 90-day notice to withdraw money, "so if we can recover in the fourth quarter," people might reconsider exiting.

Read Complete Article

Tags: 100-million, absolute-return, alan-greenspan, amount-of-money, casualties, caxton, conglomerate, exchange-trading, exxon, french-oil, investment-firms, journalism, new-zealand-dollars, public-glimpse, soft-dollar, strategist, third-party