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 »

Why Fee Reduction Is The Purest Form Of Hedge Fund Alpha

By Andrew Beer, Chief Executive Officer of Beachhead Capital In this note, we examine the relationship between the hedge fund fee structure and how it impacts alpha. In the early days of the industry, higher management fees were designed to cover costs of a deep and rigorous research and investment process; performance fees were meant […] Read more »

Decline in Fee Rates at Ashmore Concerns Sell-Side Analyst

By Jonathan Goslin, analyst at Edison Investment Research Although Ashmore Group recorded 22% growth in net AUM inflows during the year, net management fee revenues increased only 4% due to continued declines in management fees. However, continued investment outperformance across the majority of funds at the specialist Emerging Markets investment manager helped drive a 31% […] Read more »