Comments on: “1.75 and 21.93″: The new, new, new fee structure? http://allaboutalpha.com/blog/2009/11/10/1-75-and-21-93-the-new-new-new-fee-structure/ A finance blog about hedge funds, portable alpha and alternative investing. Thu, 09 Feb 2012 19:03:08 +0000 http://wordpress.org/?v=abc hourly 1 By: Richard Tomlinson http://allaboutalpha.com/blog/2009/11/10/1-75-and-21-93-the-new-new-new-fee-structure/comment-page-1/#comment-218409 Richard Tomlinson Wed, 11 Nov 2009 18:08:11 +0000 http://allaboutalpha.com/blog/?p=7380#comment-218409 Interesting research and although I have not seen a full copy of the report the exerts I have seen quoted in press articles does seem to make sense with my experiences. I chaired a conference organised by The Hedge Fund Journal in London last week on managed accounts and what role they can play moving forward. A number of the discussions certainly supported the findings of the report, namely: 1) Investor preferences placing higher weight on transparency, liquidity, control and governance 2) Assets flowing onto managed accounts are likely to increase significantly over the next year or two Interesting research and although I have not seen a full copy of the report the exerts I have seen quoted in press articles does seem to make sense with my experiences. I chaired a conference organised by The Hedge Fund Journal in London last week on managed accounts and what role they can play moving forward. A number of the discussions certainly supported the findings of the report, namely:

1) Investor preferences placing higher weight on transparency, liquidity, control and governance
2) Assets flowing onto managed accounts are likely to increase significantly over the next year or two

]]> By: nick gogerty http://allaboutalpha.com/blog/2009/11/10/1-75-and-21-93-the-new-new-new-fee-structure/comment-page-1/#comment-218345 nick gogerty Wed, 11 Nov 2009 14:27:06 +0000 http://allaboutalpha.com/blog/?p=7380#comment-218345 One interesting thing for fees structures would be for funds to offer a discount based on a lock-up with a pre-determined early exit penalty. For example a 1% fee against a 6 year lock-up etc. The risk of course is that the investor market may see this as signaling fund weakness, but it would get the "how much do you trust me and my process." argument out on the table. This would serve both the fund and the investor in the long run as it would make it less likely the investor would selll the lows in the fund, would provide more stability operationally for the fund and would better the investors returns over the long run. One interesting thing for fees structures would be for funds to offer a discount based on a lock-up with a pre-determined early exit penalty. For example a 1% fee against a 6 year lock-up etc.

The risk of course is that the investor market may see this as signaling fund weakness, but it would get the “how much do you trust me and my process.” argument out on the table.

This would serve both the fund and the investor in the long run as it would make it less likely the investor would selll the lows in the fund, would provide more stability operationally for the fund and would better the investors returns over the long run.

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