Decomposing FoHF returns
Where and when funds of hedge funds add and lose value
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28/04/2010
Has the chance for lower fees passed?
Rising performance and short memories had left investor hopes of lower hedge fund fees in tatters, but the issue was front and centre last week when the US’s largest public pension plan, the California Public Employees’ Retirement System (CalPERS), announced that it had struck a deal with private equity firm Apollo Global Management to cut its fees.
Not only did Apollo agree to cut fees for CalPERS by $125m over the next five year, it has also pledged not to use placement agents.
Hedge fund managers have not been quite as accommodating as private equity, and it is unlikely they are going to fold. Hedge fund returns have bounced back much quicker in the past year than anyone predicted and investors hoping for a massive change in fee structures have been left disappointed.
David Shukis, director of hedge fund research and consulting at Cambridge Associates, told HFMWeek earlier this year that some investors have been lucky enough to negotiate better terms with managers who have been able to provide lower fees and more flexible lock-ups.
“There has been a modest improvement over the entire industry, but that hasn’t been universal,” he said. In fact, fee negotiation is no longer at the forefront for most investors HFMWeek has spoken to recently, with little room left for negotiation.
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What's in a name? Petra Capital Management
Formed in 2005, New York-based Petra Capital Management soon forged itself a reputation as one of the hedge fund industry’s best-known investors in the commercial mortgage-backed securities (CMBS) market.
Founder Andy Stone, an expert in real-estate debt from his time at Solomon Brothers and Credit Suisse First Boston, would even go on to be described as a ‘rock star’ in the field. His choice of moniker for his hedge fund project certainly lends itself to Stone’s background – and more than just in name and reputation.
Petra is, of course, a historically and archaeologically significant city in Jordan, renowned for its architecture cut into the rock face of its central valley. The rock-carved collection of tombs, temples and waterways is one of Jordan’s most famous symbols and tourist attractions, not to mention a regular in popular culture – featuring in films such as Indiana Jones and the Last Crusade. Unesco, which made the city a World Heritage Site in 1985, described it as “one of the most precious cultural properties of man’s cultural heritage”. Most pertinently though, Petra actually means ‘stone’ in Arabic.
Not quite the force he once was, Stone suffered a…
Former Harvard Management Company duo set up maiden hedge fund manager
Steve Alperin and Sara Fleiss, previously of Harvard Management Company, have set up their maiden hedge fund manager, HFMWeek has learned.
HFMWeek Daily Snapshot - 10 February
Today: Hedge fund outflows hit record low; Trafigura hedge fund targets $3bn by year-end; SEC to Consider Settlement With Ex-Bear Stearns’ Managers; Och-Ziff Net Income Drops 94% as Performance Fees Decline; and more...
EXCLUSIVE: Texas County commits $305m to fresh hedge fund hires
The Texas County & District Retirement System (TCDRS), which has $17.7bn in assets, has allocated $305m between two hedge funds, two months after making an extra $885m available to the space, HFMWeek can exclusively reveal.
Investor demand for CTAs is on the rise, says Agecroft Partners
Agecroft Partners is seeing widespread demand from institutional investors for Commodity Trading Advisors (CTAs), which is a dramatic change from the historical reluctance of many institutional investors and their consultants to allocate to this strategy.
Read More29/02/2012
UK: Open Protocol: The Challenge and Opportunities of Standardising Hedge Fund Risk Reporting
Join us and our panel of experts for HFMWeek's Subscribers' Club February's UK breakfast briefing…
29/02/2012
US: Endowments and Foundations in Hedge Funds
The next US HFMWeek Subscribers' Club breakfast, will take place on Wednesday February 29. Join…
02/02/2011
European Hedge Fund Services Awards 2012
HFMWeek's European Hedge Fund Services Awards are designed to recognise companies that have outperformed...
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