Thursday, 23 October 2014
Last updated 1 hour ago
Feb 13 2014 | 11:50am ET
Some Scout Capital Management clients are crying foul about paying a management fee while the firm winds up operations—and the hedge fund is listening.
Scout told investors late last month that it would close after co-founder Adam Weiss decided to step back from managing outside capital. The firm also revealed that it was already 80% in cash—leading to objections from some clients about paying its 1.5% management fee this quarter.
Scout told Pensions & Investments that some clients had indeed expressed unhappiness about the fee, and that it was considering its options.
"While Scout's documents provide for a full management fee during this period, Scout is telling investors they are sensitive to the issue and are considering ways to address it," Scout spokesman Josh Pekarsky told P&I.
Scout, which has $6.7 billion in assets, plans to return most client capital by April 1.
Weiss plans to write a book about investing and run a family office. His co-founder, James Crichton, plans to found a new hedge fund, potentially with some former Scout employees.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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