Preqin: Hedge fund managers haven't dropped fees much despite investor pressure

Despite pressure on hedge fund fees, institutional investors report that over the past year, hedge fund managers have made few concessions.

More than half — 55% — of institutional investors said hedge fund managers made only slight changes to favor investors in the previous 12 months and 35% said managers had made no changes, showed the results of a Preqin survey released Thursday.

Preqin's researchers found, however, that only 35% of the single-manager hedge fund managers they track still charge a 2% management fee and a 20% performance fee.

But more detailed analysis of the mean fees charged by single-manager hedge funds in Preqin's database showed that most have not fallen very much from the 2%/20% industry standard.

In aggregate, the mean management fee for all single-manager funds is 1.57% and the mean performance fee is 19.29%.

Preqin's fee analysis of single-manager hedge funds by strategy showed mean fees as follows: equity, 1.53%/19.3%; macro, 1.7%/19.47%; event-driven, 1.6%/19.72%; credit, 1.54/18.3%; relative value, 1.58%/20.04%; multistrategy, 1.63%/19.21%; and niche, 1.5%/17.76%.