High fund of hedge fund fees are a PR disaster waiting to happen

Hedge funds are keen to become more widely available but until they cut their fees, they will never ...

Hedge funds are keen to become more widely available but until they cut their fees, they will never make it in the retail market. On one of the most recent Conjecture debates hosted by Investment Week, (see pages 30-31) two rather interesting pieces of information came to light. The first was that the fund of hedge fund (FOHFs) managers felt 5% was a fair estimation of their total expense ratio (TER). The second was that not one of the panel seemed to think this was in any way an unreasonable level of charge. There were several arguments in defence of this. The first was FOHFs produce goo...