Hedge fund fees have risen for the first time in a decade, with performance fees jumping to 17.8% amid rising operational costs and muted performance.
Top multistrategy hedge funds saw demand spike during the pandemic which enabled them to impose higher fees, but rising interest rates have raised questions among investors.
Aurum's data shows multistrategy funds gained just 6.1% in the first half of 2024, underperforming both quant-only funds and the S&P 500.
Major investors like the Teacher Retirement System of Texas are pushing for performance fee structures that are more aligned with US treasury bond returns to enhance fee accountability.
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