Investing
One of the World’s Biggest Hedge Funds to Charge Fee That’s Fueling Talent War
- Firm is preparing to charge pass through fees in flagship fund
- Such fees can reach 10% and are becoming more popular
This article is for subscribers only.
Brevan Howard Asset Management is preparing to charge some clients in its main hedge fund a new fee structure that’s fueled the ability of giant funds to poach top traders.
The firm will start a share class in its flagship Brevan Howard Master Fund to introduce the so-called “pass through” fees, according to people familiar with the matter and regulatory filings. It intends to raise money next month under the arrangement in its $10 billion strategy that has been closed to new cash, said one of the people, who asked not to be identified because the details are private.