The puzzling underperformance of performance fees – Financial News

Fund managers are constantly criticised for underperforming while charging inflated fees. So linking fees to their performance sounds pretty appealing, right? In principle, a performance fee aligns an investor’s interests with those of the fund manager — higher returns for the client result in higher fees for the manager. Performance fees are best known through their use by hedge funds, where investors rarely have a choice but to pay these fees on top of asset-based management fees.

View Article Here 


Recent Posts

Scroll to Top