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 theĀ collapse of the investment banking industry.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...