FT: Hedgies’ days of 2 and 20 over?

The halcyon days when hedge funds’ “2 and 20” fee structure went unchallenged may be over.

The debate over the amount hedge funds charge their clients – famously a 2 per cent cut on assets under management and a 20 per cent cut on returns – is a perennial controversy.

But with hedge funds still flattened by the financial crisis, and huge inflows of new money into alternative strategies anticipated in coming months, pension funds and other large institutional investors find themselves in a position to negotiate lower fees.

As trillions move to the next generation, GCC families face unprecedented pressure to plan succession sooner rather than later

Wealth

Succession planning in the GCC: Experts warn families can no longer afford to delay

Panellists at the Spear’s Summit highlight Abu Dhabi’s growing appeal as a base for family offices managing capital and making day-to-day investment decisions

Wealth

Abu Dhabi’s family office boom: why the emirate is attracting active global investors

Jad Ellawn joined Edwin Smith at the Spear’s Summit Abu Dhabi to share his outlook on property, education and technology investments across the GCC

Wealth

Brookfield Middle East boss: $15bn GCC portfolio growing through “contrarian” approach

As a survey by Prequin, the investment consultancy, found last week, the average hedge fund is now charging on average 1.63 per cent in annual management fees and 17.2 per cent in performance fees.

To read the full story, visit ft.com