Hedge Fund Investors Are Getting More Demanding About Charges
- Surveys suggest growing preference for hurdle rates on fees
- Appetite for multimanager funds waned slightly from prior year
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More hedge funds are agreeing to conditions on their performance fees, reflecting a tougher environment for attracting investors to riskier strategies.
A survey by Barclays Plc found 67% of investors now prefer a hurdle rate, meaning the fund must perform a certain amount above a threshold before they can charge incentive fees.