Wednesday, 26 November 2014
Last updated 12 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."
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...