Core Insights - The hedge fund industry has charged investors a total of $1.8 trillion in fees since 1969, consuming nearly half of the industry's returns [1] - Investors are increasingly dissatisfied with opaque and high fees, leading to a "vote with their wallets" approach against funds that pass on substantial operational costs [1][2] - The "pass-through" fee model allows hedge funds to transfer significant expenses, including salaries and operational costs, directly to investors, raising concerns about transparency and fairness [2][3] Fee Structures - In 2023, Balyasny's hedge fund achieved a gross return of 15.2%, but investors only received a net return of 2.8% after fees, which totaled over $768 million [2] - The average pass-through fees for funds analyzed by Blackstone were about 6.5%, with some managers charging as much as 15% [3] - The traditional "2+20" fee structure is being overshadowed by pass-through fees, with some investors estimating their effective fees to be equivalent to "7+20" or even "15+20" [2] Salary and Compensation - Hedge funds are known for high compensation, with Millennium's London partners earning an average of £8.9 million in 2024, and Citadel's partners averaging $23 million [3][5] - The rationale for such high salaries often includes non-compete clauses that restrict top talent from moving to competitors, thus inflating their market value [6] - Investors indirectly bear the cost of these high salaries, as funds can pass on nearly all operational expenses, including exorbitant compensation packages [6][7] Transparency Issues - There is a lack of clarity regarding what expenses are included in pass-through fees, leading to investor skepticism about the nature of their financial contributions [3][7] - Various costs, such as bonuses, recruitment expenses, and even travel costs, can be passed on to investors, further complicating the fee structure [7][10] - Citadel's funds have reportedly charged nearly $12.5 billion in pass-through fees, with over $11 billion allocated to employee compensation and benefits [10] Investor Sentiment and Response - Major institutional investors, such as the Texas Teacher Retirement System and New Mexico's pension fund, are beginning to distance themselves from hedge funds due to excessive fees eroding returns [14][16] - New Mexico's pension fund has set a threshold that if pass-through fees reduce profit sharing below 60%, they will withdraw their investments [16] - The industry is at a critical juncture, as investors demand greater transparency and accountability regarding fees, which could reshape the hedge fund landscape [18]
LP集体“造反”:对冲基金,你这费收的不心痛吗
3 6 Ke·2025-08-26 12:41