Walk around London’s Mayfair or New York’s Midtown at the moment and – if you can avoid tripping over unemployed bankers – you can listen in on plenty of conversations about kicking hedge funds while they’re down.
This is not about punishing flashy fund managers for their worst ever year, although there is no shortage of schadenfreude. Rather, investors are riled about fees, the famed “2 and 20” – 2 per cent a year and 20 per cent of profits – the standard hedge fund charges.
It is now commonly accepted that fees will fall, as hedge funds’ demands for capital exceeds supply from investors, and market forces work their magic. In fact, fees are already falling at many funds, something Bentley dealers and yacht brokers should be watching closely.
No comments:
Post a Comment