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Hedge funds struggling but still charging investors for travel and drinks bills

Clients often end up paying more than twice the industry's standard fees of 2 per cent of assets and 20 per cent of investment gains

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This calls for a stiff drink: In 2014, consulting firm Cambridge Associates studied fees charged by multi-manager funds, which often include pass-through charges for various expenses. Their clients lost an average of 33 per cent of profits to fees.

New York

INVESTORS are starting to sour on the idea of reimbursing hedge funds for multi-million- dollar trader bonuses, lavish marketing dinners and trophy office space.

Powerful firms such as Citadel LLC and Millennium Management LLC charge clients for such costs through so-

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