The Teacher Retirement System of Texas (TRS), one of the world’s largest hedge fund allocators, has officially changed the fee structure it will pay fund managers, ValueWalk has learned. We first reported the proposed move to change the hedge fund fee structure on December 20. With hedge funds generally underperforming their major stock benchmarks – the HFRI Fund Weighted Composite Index, many long bias, delivered +5.6% returns in 2016 while the S&P 500 finished up 9.54% — TRS addressed what it called a “flaw” in the fee structure when rolling out a system designed not to pay excessively for beta…
One Of America’s Largest Pension Funds Plans Hedge Fund Fee Overhaul
Mark Melin
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.