Investors are starting to withdraw money from mediocre Asian hedge funds that charge high fees, a trend that’s forcing changes in the economics of the business, according to the global head of prime brokerage at Nomura Holdings Inc.
“Organizations and investors don’t like to pay 2-and-20 when funds are not making money,” Nomura’s Christopher Antonelli said in an interview. “The big investors are forcing that change and they will continue to do that by starting to pull money. You don’t get any more money if you don’t change.”
