Saturday, 25 April 2015
Last updated 1 day 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.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…