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Caxton Reduces Management Fees as Industry Pressure Mounts

  • Andrew Law’s hedge fund also creates share class with 2% fee
  • Law takes aim at peers saying ‘living well’ on fees isn’t goal
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Why Caxton Associates Is Reducing Management Fees

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Andrew Law’s Caxton Associates, one of the oldest and most expensive hedge funds, trimmed management fees amid losses, joining Tudor Investment Corp. and Och-Ziff Capital Management in responding to an investor backlash that’s roiled the industry.

The firm will charge 2.2 percent to 2.5 percent annually on assets, according to a letter obtained by Bloomberg. It previously charged as much as 2.6 percent, according to a government filing. Caxton, based in New York, will continue to take a 27.5 percent cut of profits. In announcing the decision to investors, Law took aim at rivals.