Caxton Cutting Fees

Oct 15 2012 | 8:33am ET

Caxton Associates, the $7.5 billion New York-based hedge fund, will lower the fees it charges clients.

The fund, which had been charging a 3% management fee and 30% performance fee, will cut those to 2.6% and 27.5%, reports the Wall Street Journal, citing people familiar with the firm.

That still puts the fund's fees above the industry standard 2% and 20%. Caxton has been able to charge  high fees because, since its inception in 1983, it has produced annualized returns of about 20%. Since 2008, however, the macro fund—like other macro funds—has produced more muted returns. Last year, the fund returned 0.7% and, in a letter described to the WSJ by investors, Caxton chairman and CEO Andrew Lane acknowledged the lower recent performance.

In deciding to cut fees, Caxton follows managers like Tudor Investment, which introduced a new share class for its flagship fund carrying fees of 2.75% and 27% (compared to 4% and 23%) and the $7.3 billion Graham Capital Management which is reportedly considering cutting fees for its Proprietary Matrix hedge fund.

Caxton was founded in 1983 by Bruce Kovner and Peter D'Angelo, both of whom retired last year.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note