Hedge Funds

Hedge funds bring in new fees amid pressure on ‘2 and 20’ structure

‘In an investment industry where the shift is to lower cost, many hedge funds are doing exactly the opposite’

In a tough period for hedge funds, some key players are starting to levy new types of fees
In a tough period for hedge funds, some key players are starting to levy new types of fees Photo: Getty Images

Hedge funds are introducing a raft of new fees, reversing downward pressure on their '2 and 20' charging structures, industry leaders say.

Hedge funds typically charge a 2% management fee on total assets, alongside a 20% performance fee on profits generated.

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