Hard-up hedgies

Warning to all Mercedes dealers: hedge fund bonuses could be tight this year.  Many money managers are looking at lower pay — in the form of performance fees — as tepid returns for 2012 fail to make up for last year’s steep losses, the New York Post writes.

As of the end of the second quarter, only 43 percent of hedge funds had cleared a performance hurdle known as high-water marks over the past 12 months, according to data from fund tracker Hedge Fund Research.   For many, those that fail to hit their marks by the end of the year will forgo their usual fee of 20 percent of profits until clients have recovered from losses..

Last year was a rocky one with the lingering downturn, Europe’s debt woes and the historic credit downgrade of the US.  So far this year, the average hedge fund is up just 2.29 percent, compared with losses of 8.87 percent last year, according to HFR’s hedge fund index, suggesting that many funds are still trying to get their heads above water….

Read all about it at http://www.nypost.com/p/news/business/hard_up_hedgies_NITnuuB1lLqw0O0RctkOgL