{"id":5787,"date":"2007-03-12T00:00:00","date_gmt":"2007-03-12T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"solving-the-hedge-fund-deadweight-fee-problem-seeking-alpha","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/03\/2007\/solving-the-hedge-fund-deadweight-fee-problem-seeking-alpha.html","title":{"rendered":"Solving the Hedge Fund &#8216;Deadweight&#8217; Fee Problem"},"content":{"rendered":"<p><strong>Last week both <a href=\"http:\/\/money.cnn.com\/2007\/03\/09\/news\/companies\/ford_bonuses\/?postversion=2007030914\" target=\"_blank\">Ford<\/a> (<a href=\"http:\/\/seekingalpha.com\/by\/symbol\/f\" title=\"More opinion and analysis of F\">F<\/a>) and <a href=\"http:\/\/money.cnn.com\/2007\/03\/07\/news\/companies\/delta_pay\/index.htm?postversion=2007030716\" target=\"_blank\">Delta<\/a> (<a href=\"http:\/\/seekingalpha.com\/by\/symbol\/dalrq\" title=\"More opinion and analysis of DALRQ\">DALRQ<\/a>) got off their deathbeds to hand out goodies to many of their employees. Response was swift as bloggersand columnists asked why a company like Ford that lost $12.7 billion last year was in a position to hand out anything at all. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cWhat a waste!\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d, bloggers wrote. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cIt\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s all so hopeless\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d, \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cNothing everchanges!\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d.<\/strong><\/p>\n<p>  <strong>Hedge funds of funds face a similar problem nearly every year. Typically, a single hedge fund charges a 2% management fee and a 20% performance fee. A fund of funds then adds a further 1%  management fee and often a 10% performance fee of their own. So on the surface, the nickname &#8220;fees of fees&#8221; may seem appropriate to some.<\/strong><\/p>\n<p><strong><\/p>\n<p><strong><a href=\"http:\/\/news.google.com\/news\/url?sa=T&amp;ct=us\/5-0&amp;fd=R&amp;url=http:\/\/seekingalpha.com\/article\/29239&amp;cid=0&amp;ei=yEz1RaCkOpD8sgGE3qDrCQ\">Read CompleteArticle<\/a><\/strong><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last week both Ford (F) and Delta (DALRQ) got off their deathbeds to hand out goodies to many of their employees. Response was swift as bloggersand columnists asked why a company like Ford that lost $12.7 billion last year was [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5787","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=5787"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5787\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=5787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=5787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=5787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}