Hedge Fund Costs On The Rise

Dec 10 2012 | 5:38am ET

Running a hedge fund is getting expensive, and clients are feeling the pinch.

Most North American hedge funds said that costs have increased this year, and most of them are passing those costs on to investors, according to a new Ernst & Young survey. And that's not likely to make those investors happy, the survey shows.

Almost 60% of hedge funds said their costs have increased over the past year. And "68% of funds passed along these increased costs—up from only 34% in 2011," E&Y's Joseph Micallef said.

"There will continue to be a greater push and pull on this issue of cost allocation for the foreseeable future as investors increasingly show less appetite for costs to be charged to the fund that they did a year ago," Micallef continued. "We don't see this trend changing unless funds greatly improve investment performance returns."


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note