Last week both Ford (F) and Delta (DALRQ) got off their deathbeds to hand out goodies to many of their employees. Response was swift as bloggersand columnists asked why a company like Ford that lost $12.7 billion last year was in a position to hand out anything at all. “What a waste!â€Â, bloggers wrote. “It’s all so hopelessâ€Â, “Nothing everchanges!â€Â.
Hedge funds of funds face a similar problem nearly every year. Typically, a single hedge fund charges a 2% management fee and a 20% performance fee. A fund of funds then adds a further 1% management fee and often a 10% performance fee of their own. So on the surface, the nickname “fees of fees” may seem appropriate to some.
