Hedge Fund CFM Hikes Fee to 30% as Quant Arms Race Escalates
- French firm has benefited from the return of market volatility
- Chair Jean-Philippe Bouchaud pokes holes in efficient markets
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Jean-Philippe Bouchaud is no stranger to challenging orthodoxy in finance. The theoretical physicist turned hedge-fund executive has gained fame for his combative research detailing the flaws of the efficient-markets hypothesis in an era of mindless capital flows, from the meme-stock mania to the index-chasing boom.
Away from his scholarly endeavors, the Capital Fund Management chairman has overseen another bold move: Hiking the performance fee on his firm’s flagship quant fund from 20% to an eye-watering 30%.