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%.
