Monday, August 9, 2010

Hedge Fund Management Fees

Some past, conventional hedge fund fees, 2% of assets under management and 20% to 25% of profits generated, are being trimmed down.

Also, it’s getting tougher for hedge funds to find as many clients as before. Many are taking smaller-sized investment amounts.

But considering the 2008/2009 financial meltdown, hedge fund fees have been more stable than expected. Some hedge funds continue to make big money. But they are a decided minority, compared to the past.

As for the future, money over the shorter term will be made from aberrations in the economy, not corporate earnings growth.

So hedge fund fees will remain competitive.

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