Chris Rokos Raises Client Fees at $22B Hedge Fund

Management Fee Increase & Industry Trends - Rocco's Capital Management is proposing a gradual increase in fixed management fees to 275% over three years [1] - This fee structure approaches the "three and 30" model seen among large multi-strategy hedge funds [2] - Multi-strategy hedge funds and others are experiencing a divergence in the hedge fund industry [2] Performance & Talent Acquisition - Rocco's has demonstrated strong performance in the last three years, with returns of 31%, 9%, and 50%, and is up 12% in the first half of the year [3] - The company cites the need to invest in top talent, research, and technology as reasons for the fee increase [5] - Increasing fees allows the company to compete with firms like Millennium and Citadel for top talent by offering competitive compensation packages [3][4] Size & Flexibility - Rocco's manages approximately $22 billion [6] - Maintaining flexibility and nimbleness becomes challenging as a hedge fund grows in size, potentially justifying the fee increase to manage growth [6] - The fee increase could be a test to gauge investor willingness to accept higher fees and potentially manage redemptions [7]