FN – Consultants say investors should step up the pressure on hedge funds by questioning the industry’s standard fee structure to get a better understanding of whether they are receiving value for money.
Phil Irvine, director of consulting firm Pirho, says investors must realise that we are now in “a low return world” in which it is no longer acceptable to pay high fees for little discernable skill: “To be charging the same nominal fees as the golden years of the 1990s and 2000s is a bit rich, you need more skill to justify it and I am not seeing anyone saying hedge fund managers are better than they used to be,” he said.
