Tuesday, 28 July 2015
Last updated 3 hours ago
Sep 21 2010 | 8:52am ET
Citadel Investment Group may cut its fees and ease its redemption terms in an effort to attract investors to its flagship hedge funds.
The $11 billion Chicago-based firm does not charge a set management fee on its Kensington and Wellington funds, instead passing along all of its expenses, which have amounted to as much as 8% of assets. Generally, the fee amounts to between 4% and 6%, some three times the industry average.
Those fees may soon come in closer to that average, with Citadel mulling a fee cut. The firm, which suspended redemptions in 2008 after the funds lost 55%, may also ease its withdrawal policies. The funds currently feature quarterly redemptions, but some investors still face long lockups.
The funds have returned about 4% this year. They still must rise another 30% before they have recouped their losses, despite returning 62% last year.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…