3 / 30% fees, excessive?

Discussion in 'Trading' started by crgarcia, Nov 3, 2008.

  1. Most hedge funds charge 2/20%, how about 3/30%?

    If your customers are a bit naive, yet you have long term 3-5 years expectation of 15-20% profits on average?
     
  2. Mods, could you please move it to Career Trader forum?

    Couldn't delete.


    tnx
     
  3. funny. The industry trend is 0 /10 or even 5

    Good luck!

    Surf
     
  4. Vorpal

    Vorpal

    If you are Renaissance Medallion, 5%/44%. But it helps if you can return in the 40s >after fees< for 20 straight years like they have.

    3%/30% seems rather high, especially if they don't have a long track record to back it up. 1-2%/20% and even 0%/20-30% much more common to hedge fund space. With many HFs down big on the year-- if not folding outright-- just hanging on to assets is the main challenge for many, let alone raising new capital. Perhaps that will put some pressure on fees in general. I imagine many HF investors are further questioning their fees at this point, esp. if their investment has underperformed a 20bp fee index fund. Those HFs that are having good years can use this period to assert that their fees are indeed "worth it".
     
  5. Not excessive at all if you give back 133% of the losses.