Financial Times – One of the UK\u2019s fastest-growing hedge funds is slashing its fees, in a move that it hopes will spark a rethink of the industry\u2019s notoriously high charges.<\/p>\n
The new Core Macro fund being set up by Cambridge-based Cantab Capital will employ similar trading strategies as funds from Man Group, Winton Capital and BlueCrest, three of the world\u2019s biggest hedge funds that manage $100bn between them, but at half the cost to investors.<\/p>\n
While the industry standard is an eye-watering \u201ctwo and 20\u201d, or 2 per cent of all capital invested annually and 20 per cent of all profits, Cantab\u2019s new fund levies only 0.5 per cent and 10 per cent.<\/p>\n
Fees are set to become one of the hedge fund industry\u2019s biggest areas of change as large institutional investors try to use their clout to force discounts in a tough trading environment that has dented hedge funds\u2019 once-high returns.<\/p>\n