Risk Management
Hedge fund fees fall to lowest level since 2008 financial crisis -HFR
Reuters - 06 Jan, 2023
Hedge fund fees have dropped to their lowest level since the global financial crisis in 2008, research firm Hedge Fund Research (HFR) said on Friday, as high inflation and recession fears hit investors.
HFR said hedge fund base fees fell from the second to the third quarter of 2022 by one basis point (bps) to an estimated 1.35% and that average incentive fees tumbled 4 bps to 16.01%.
Both estimated fees represent their lowest levels since HFR began publishing the estimates in 2008, a note from the firm added.
REUTERS/Andrew Kelly
LONDON, Jan 6 (Reuters) - Hedge fund fees have dropped to their lowest level since the global financial crisis in 2008, research firm Hedge Fund Research (HFR) said on Friday, as high inflation and recession fears hit investors.
HFR said hedge fund base fees fell from the second to the third quarter of 2022 by one basis point (bps) to an estimated 1.35% and that average incentive fees tumbled 4 bps to 16.01%.
Both estimated fees represent their lowest levels since HFR began publishing the estimates in 2008, a note from the firm added.
It was a challenging year for some classes of hedge funds, particularly long-only stock investing firms broadsided by declines across all of Wall Street's three main indexes, which booked their first yearly drop since 2018 as surging inflation and the risk of recession dented investment in equities.
The HFRI 500 Fund Weighted Composite Index, which tracks many of the biggest global hedge fund performances, posted a year to date decline of 2.78% through November 2022, whereas a larger index tracking the total industry fell by 3.87% to the end of November 2022.
Hedge fund fees have dropped to their lowest level since the global financial crisis in 2008, research firm Hedge Fund Research (HFR) said on Friday, as high inflation and recession fears hit investors.
HFR said hedge fund base fees fell from the second to the third quarter of 2022 by one basis point (bps) to an estimated 1.35% and that average incentive fees tumbled 4 bps to 16.01%.
Both estimated fees represent their lowest levels since HFR began publishing the estimates in 2008, a note from the firm added.
REUTERS/Andrew Kelly
LONDON, Jan 6 (Reuters) - Hedge fund fees have dropped to their lowest level since the global financial crisis in 2008, research firm Hedge Fund Research (HFR) said on Friday, as high inflation and recession fears hit investors.
HFR said hedge fund base fees fell from the second to the third quarter of 2022 by one basis point (bps) to an estimated 1.35% and that average incentive fees tumbled 4 bps to 16.01%.
Both estimated fees represent their lowest levels since HFR began publishing the estimates in 2008, a note from the firm added.
It was a challenging year for some classes of hedge funds, particularly long-only stock investing firms broadsided by declines across all of Wall Street's three main indexes, which booked their first yearly drop since 2018 as surging inflation and the risk of recession dented investment in equities.
The HFRI 500 Fund Weighted Composite Index, which tracks many of the biggest global hedge fund performances, posted a year to date decline of 2.78% through November 2022, whereas a larger index tracking the total industry fell by 3.87% to the end of November 2022.