Performance Fees Disappear, Survey Shows

Sep 23 2008 | 10:26am ET

Barely any hedge funds are currently doing well enough to collect performance fees, a new survey shows.

A Eurekahedge poll of some 4,000 hedge funds from around the world found that just one in 10 are earning performance fees, as hedge funds have been beaten down this year by the credit crisis and Wall Street volatility. Worse yet, just 3% of hedge funds surveyed were above their high-water mark.

Some 90% of equity long/short hedge funds were below their high-water marks, according to Eurekahedge.

The numbers are only slightly less grim for other strategies, with 86% of event-driven funds, 85.4% of distressed securities funds and 82.6% of futures funds below their high-water marks.

And the stats figure to get even worse. The survey used numbers from July 31, before the recent moves against short-sellers and the collapse of the investment banking industry.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...