Some Hedge Funds Keep Over Half of Their Profits Through Customer Fees
- Clients got 41% of gains at funds passing on all costs
- Investors signal they may allocate more to hedge funds in 2024
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The priciest multistrategy hedge funds are now keeping most of the profits they generate, while clients shoulder their costs.
Clients received 41 cents of every $1 made by multistrategy funds that passed on all their costs last year, according to a survey by the prime brokerage unit of BNP Paribas SA. Their share is down from 54 cents in 2021, reflecting a startling new reality where the most popular funds effectively have a blank check for expenses.