Adage Capital Partners?

I recently learned about Adage and am interested in how a fund like this works. Per their recent 13-F it seems the fund basically follows the S&P Index + some SMID equities. They manage $54B, so its a behemoth in terms of AUM, but run pretty lean with ~50 heads on LinkedIn. (i) What's the fee structure for a firm like this? (obviously not 2 & 20) (ii) Why wouldn't LPs just buy SPY and make their HF allocations to smaller funds than work with guys like this? 

Thank You 

3 Comments
 

There is a massive WSJ article on them, but not much else out there. They were one of the first long-only funds to have an HF-like incentive structure (e.g., performance fees only in alpha against S&P 500).

 
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