Financial News Online US- Two more of the world’s best performing hedge fund managers have reopened their funds for the first time in years as the industry switches fromgenerating high returns to gathering assets.
Tudor Investment Corporation, with net returns of 24% a year, is marketing its funds and has cut the length of its lock-ins, the minimum period for investors to stay in the fund, from two years to three months, according to investors.
Tontine Partners, a US manager with net returns of 38% a year, is seeking new capital for its funds, according to investment consultants. They join established managers SAC, Caxton, Renaissance Technologies and Pequot in trying to attract new investors.
Many managers predict investment returns will fall over the long term and regard raising assets under management as the way to maintain or increase their fee income, say consultants.
Generating more income from management fees, rather than performance fees, will stabilise their earnings and make them easier to float on the public markets.
