BBC Business – It wasn’t a bad year for hedge funds. They rose 13.86% on average in 2006 – almost double what they made the previous year, according to the Credit Suisse/Tremont hedge fundindex.
But that performance – which to be clear, is not particularly special – does not come cheap.
Hedge fund managers charge 2% in annual charges and take between 20% and 40% of any capital gains made by the invested funds.
The rewards for the managers are stupendous, which is why so many bankers, brokers and hedge funds have set up hedge funds in recent years.
Thus the 10 partners at Sloane Robinson – a successful UK hedge fund – shared £208m between them in the 16 months to last March. In other words, that is £20m plus trousered per partner.
Nice work, you might think. But hedge-fund superstars in the US do so much better – they make 10 times that.
