Hedge Fund ‘Casino’ Fees Shunned by $19 Billion Pension Fund
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The British Broadcasting Corp.’s $19 billion pension trust is cutting allocations to hedge funds as it seeks to reduce spending on fees for money mangers.
“We’re not terribly enthusiastic about the idea of paying a manager two and twenty just to go to the casino on our behalf,” James Duberly, the BBC’s director of pension investments, said in an interview. Hedge funds traditionally charge a management fee that’s 2 percent of assets, plus 20 percent on any profit.