Tuesday, 16 September 2014
Last updated 20 min ago
Nov 10 2010 | 11:38am ET
Millennium Management founder Israel Englander took the opportunity of a rare public appearance to take his fellow hedge fund managers to task on management fees.
Two percent is "an arbitrarily pre-established" management fee that has hurt the hedge fund industry's entrepreneurial instincts, Englander told the Terrappin Hedge 2010 conference in London yesterday.
"The real problem with the two and 20 structure was that the manager's incentives changed," Englander said. In particular, the incentive to increase assets under management pushed hedge funds to expand outside of their competency to increase management fee revenue.
"Name me another industry in the world that has a management fee like this," he challenged. "If a manager has skin in the game, why would he create larger costs that are unnecessary?"
"For 20 years, one thing has not changed, especially not at Millennium," Englander boasted. "We get paid strictly on performance, not on promises."
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
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