Brevan Howard announced today that they are cutting some management fees to 0%. It probably signals that things are getting tougher for HF's and the industry is getting even more competitive.
What does this mean for the HF industry in general? Is it the start of a new trend? Or is it just an experiment that maybe a one-off?
While this is news, the underlying phenomenon isn't. There have been lots of headlines recently about HF fees coming down.
True. 0% is definitely news to me though.
2 and 20 or GTFO. We're not UNICEF.
that's what I'm saying bro.
W
What do you think this Fund is? A god dam charitable organisation!
"This ain't no after school special!"
The result fucking speaks. If you get shit load of money from clients and lose them, you aren't any different from a charity.
EXPENSES + 20, assuming you have a careful and thrifty fund manager. Fewer conflicts of interest that way.
funds only cut fees when performance is sub-standard. BH has been struggling with performance, and they fear capital running for the exits.
nothing special here...hedge fund capital is jumpy and will chase returns...
Hard to ask people to give you their money when you suck: https://www.bloomberg.com/news/articles/2016-04-26/brevan-howard-invest…
This is only for clients who have asked to redeem their investments. Kind of like cable companies who give you a better deal if you tell them you're about to switch providers. They're not cutting management fees to 0% for everyone.
but muh Imperial stem grads...
For those who know, what do you think are the biggest factors that have caused the HF industry to decline while the market in general has been going upwards for past few years?
How and when will the downward trend reverse?
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