Hedge Fund Fees

[jordi742]

It has been spoken a lot about hedge fund fees.What structure do you think would be the best for both clients and hfm?

- 0 and 25%
- 1 and 15%
- ....

What about this one?? https://nypost.com/2013/09/09/tiger-global-goes-long-only/

It's 1,25 plus 20% with 5%hurdle

 

[Scataphagos]

Whatever clients will tolerate. However, client's won't keep paying high fees unless your performance for them is superior.

(Clients jump into hedge funds because they think/hope? performance will be "the bomb"... but they don't stay long when they see performance is actually just "firecracker", or "lady finger".. or even a dud.)

See what I did there?... 4th-of-July fire works tie-in )

 

[zdreg]

It has been spoken a lot about hedge fund fees.What structure do you think would be the best for both clients and hfm?

- 0 and 25%
- 1 and 15%
- ....

Neither.
The hedge fund industry is a seller of fake dreams, catering to investors with inflated egos.

 

[jys78]

Neither.
The hedge fund industry is a seller of fake dreams, catering to investors with inflated egos.

This. You're paying to pump your ego and brag what an exclusive club you're part of (meanwhile grossly underperforming the bogle crowd).

Unless you're in the Medallion Fund, of course.