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 »