According to a NY Post report investors are sick and tired of paying fees for little in
return, and in no place is that more evident than in the fund-of-funds
industry. In June, investors pulled $8.7
billion from such firms, according to Trim Tabs Investment Research, which said
that $50.4 billion came out of funds of funds over the prior 12 months, leading
to a $32.1 billion drop in overall hedge-fund assets in that time.
Funds of funds invest in a portfolio of hedge funds for both
individual and institutional investors.
While some firms are now lowering fees,
they typically charge a 1 percent management fee and 10 percent performance fee
— on top of the fees that go to the component funds.
“Investors are saying, ‘Why should I pay a second layer of
fees while you guys are not going to give me extra performance?’” said Leon
Mirochnik, an analyst with Trim Tabs....
No comments:
Post a Comment