Should You Want To Invest In a Hedge Fund That Doesn't Want A Performance Fee?

HFA Padded
Mark Melin
Published on
Updated on

With certain fund managers struggling to beat stock market index benchmarks, investors have been questioning why they should pay management and performance fees when there isn’t much performance? Maverick Capital’s Lee Ainslie thinks he might have the answer. The flagship stock-picking fund, which is now managed Andrew Warford, and which is down 2% this year through September after losing 10% last year, is ditching the performance-based fee, The Wall Street Journal first reported. This begs the question: should investors really want a manager won’t accept payment based on their performance? After two years of negative performance hedging for a market crash…

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HFA Padded

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.