In a period of low single-digit returns, traditional hedge fund fee structures are too onerous. This has led to poor outcomes and pressure on hedge funds from investors such as pensions, insurance companies and sovereign wealth funds. Additionally, many hedge fund strategies contain elements of market beta that are available to investors for free. Our roundtable of leading asset owners will share their views on questions such as:
- How can asset owners and hedge fund managers compromise on a solution that reflects these realities?
- Can innovations, such as "1 and 30" fee structures, lead to better alignment for both hedge fund managers and their investors?
- How should the hedge fund business model evolve?
Director, Absolute Return Strategies, General Motors
Senior Vice-President, External Portfolio Management - Public Markets, Caisse de dépot et placement du Québec
Senior Managing Director, Teacher Retirement System of Texas; Trustee, Hedge Fund Standards Board
Head, Fixed Income and Absolute Return Department, China Investment Corporation