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Hedge fund's fee model faces smart beta threat
These competitive money pools typically charge as little as a quarter of the levy and often don't demand a share of the profits.
Add BT as a preferred sourcePublished Fri, May 20, 2016 · 09:50 PM
London
HEDGE funds, shrinking at the fastest pace since the financial crisis, face a challenge to their lucrative fee model: "smart beta" money pools that charge a quarter of the levy and often don't demand a share of the profits.
The search for lower fees will help propel the assets managed by smart beta funds more than fourfold to US$1.2 trillion through 2019 from 2014, Citigroup Inc estimates.
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