Investors Tell Hedge Funds They Want Lower Fees

Institutional investors are sending a strong message to hedge funds after last year’s largely lackluster returns: charge us less and perform better.

Nearly one quarter of 134 investors polled by Preqin Ltd said fees would be a key issue in 2015, the research group wrote in its first-half outlook, released on Thursday.

And 30 percent of investors said fees will factor into their manager selections, up from 21 percent who said they took costs into account when the group was last polled in 2013.

The data could put fresh pressure on managers to trim fees after the industry posted its worst results since 2011 last year and after the California Public Employees’ Retirement System, the biggest U.S. pension fund, decided in 2014 to exit hedge funds altogether.

Source: Reuters

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