FCA Asset Management Market Study – All-in fees, cost disclosures, and service quality

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By Nathalie Neumayer and Paul Carrigg of KB Associates   Introduction   In November 2015, the Financial Conduct Authority (“FCA”) launched its asset management market study. In November 2016, the FCA published an interim report which provided industry participants with an opportunity to comment on proposals which it made. On 28 June 2017, the FCA published […] Read more »

Importance of Funds of Funds to Newer Managers Evident in Seward Kissel Study

From Seward & Kissel   Driven by our ongoing commitment to understanding the dynamics of the hedge fund marketplace and bringing the latest industry color to our clients and friends, each year Seward & Kissel conducts various studies of the most important trends we are seeing that are impacting the hedge fund community. This year, for the second year in a […] Read more »

Canadian Perspectives on Hedge Funds in 2016

From CFA Montreal Association A Q&A on hedge funds in Canada with: Marc Amirault, MBA, President and CEO, Director of Investments, Crystalline Management (single manager hedge fund business) Jean-François Papillon, MBA, CFA, Portfolio Manager and Wealth Advisor, BMO Nesbitt Burns Yves Caron, MBA, CFA, Vice-President, Research, iNFiNi-t Wealth Management Advisers Inc. To begin, perhaps each […] Read more »

Graphic of The Day – Hurdle Rates & Tiered Fees in Hedge Funds

From the Alternative Investment Management Association (AIMA)*   Among the findings in AIMA’s paper “In Concert – exploring the alignment of interests between hedge fund managers and investors” :  One-in-three managers now charge performance fees above a hurdle rate, such as a fixed percentage or an index-based benchmark Three-quarters (77%) of managers offer or are […] Read more »

Fee Pressures Are a Hot Button

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By Simon Kerr, Publisher of Hedge Fund Insight   Fee pressures are ubiquitous in the hedge fund industry. Pre-Credit Crisis there were fee pressures, but some large and very large managers with capacity-constrained funds and closed to all new capital could not be bullied or argued into fee concessions. In the aftermath of the Credit […] Read more »

New Hedge Funds Cannot Achieve Even 1.5/15% Fees In U.S.

From Eurekahedge/Hedge Fund Insight staff   Table 1 details the average performance and management fees charged by North American hedge funds based on their year of inception and serves to give an idea of how the fee structure for hedge funds has evolved over the last 10 years. Historically hedge fund performance fees have remained […] Read more »

Seeders Becoming Much More Important To New Hedge Funds According To Study

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By Steve Nadel (lead author), Partner Seward & Kissel Investment Management Group   Introduction & Key Findings Driven by our ongoing commitment to understanding the dynamics of the hedge fund marketplace, each year Seward & Kissel conducts The Seward & Kissel New Hedge Fund Study of newly-formed hedge funds sponsored by new U.S.-based managers entering […] Read more »

Man’s 2014 Results Benefit from Diversification of Earnings and Cost Cuts

From Fitch Ratings Man Group plc’s (Man) solid performance in 2014 shows that   recent acquisitions have increased the diversification of Man’s  earnings and distribution base in a still challenging environment for alternative investment fund management, Last week’s announcement of the planned acquisition of NewSmith LLP, a small London-based equity investment manager, is likely to reinforce […] Read more »

Hedge Fund Performance Fees – A Growing Problem

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By FundCalcs/ Global Perspectives   Introduction Hedge funds’ performance fees are a key component of every fund’s Net Asset Valuation calculation. Since the economic crisis of 2008, hedge fund performance and incentive fees have become more complex. The standard “2 and 20” fee model is often not the case anymore. This has meant calculations on […] Read more »

A Dilemma For Fortress As Hedge Funds Nudge Towards Full Profit Potential

By Hedge Fund Insight staff The hedge fund business of Fortress Investment Group is nudging toward full profit potential five years after the Credit Crunch. Fortress’ reporting puts the hedge funds that take credit risk into a separate bucket from the others, so the award winning  Drawbridge Special Opportunities Funds comes under Credit Hedge Funds.  The […] Read more »