City AM – Investors are enjoying more negotiating power than ever before when it comes to investing in hedge funds, putting increasing pressure on managers to lower fees and offer greater liquidity in the wake of the credit crisis, a new survey has shown.
Over half of the investors polled for an Ernst & Young report on the industry said they now have more power than before the crisis, while over 40 per cent said they had actually managed to pressure their hedge fund managers to lower management and incentive fees.
