AQR's Asness Slams Fees, Hedge Fund 'Genius'

Feb 5 2013 | 2:29am ET

AQR Capital Management chief Clifford Asness is chiding his peers over the fees they charge.

Echoing George Soros' recent criticism that high hedge fund fees will make it difficult for the industry to keep pace with the broader markets, but in an even more biting way, Asness told Financial News, "Most hedge fund strategies are more about very competent implementation and fair fees and terms than they are about 'genius.'"

"Hedge funds generally offer a nice portfolio (gross of fees!) of passive beta, alpha, and a middle ground we call hedge fund beta or style premia," Asness continued. "But, unfortunately, managers like to charge fees as if it's all alpha."


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...