Options Trading Hedge Funds Decline in income that you receive from hedge fund performance fees this year strongly, fell in the first half of 2015 is greater than the past seven years combined as much.
The reservoir fear that the decline in performance fees next weak revenue across the hedge sector, could force the new and old funds both on the closure.
According to data from the company «Eureka Hedge», hedge funds impose a new fee of 14.5% on average, in what is a big drop from the 17.1% rate in 2014.
Also severely damaged many famous hedge funds such as the current year «Fortress», which with assets of 2 billion dollars, and «Renaissance Technology» billion dollars, after it made a poor returns for Platinum Profits Software investors.
Said Jane Keller, executive director of the Swiss hedge fund «Argus», the newspaper «Financial Times» The funds, which will not achieve the revenue and show real talent in investment will disappear.
The Platinum Profits Review company data last week predicted that the current year will be the worst year on hedge funds in terms of performance since 2010, due to militant managers to respond to the uncertainty surrounding monetary policy in China, raising US interest.
Says Mohamed Hassan, senior analysts «Eureka Hedge»: «With the increasing competition in the VirtNext Scam sector, may result in higher regulatory costs, and not to the current uncertainty in the market, and the decline in fees to the early disappearance good investment models».
He explained that in case of deterioration of things more, you will have a lot of funds to close over the next year, and smaller funds will be in the higher risk in view of the adoption of their business model more on performance fees.
She said the company «Eureka hedge» The decline in performance fees was the worst between traditional hedge funds investing in stocks ill over the long term or Sarah’s Confession short.
Data company added that the emergence of traditional funds offer strategies similar to those of hedge funds contributed to the decline in performance fees, which amounted for 17% and 18% since 2009, after falling from 18.8 percent in 2007.
He expected to tell Jayski, a partner in the fund VirtNext Review, a further decline in fees in light of weak revenues in the sector this year.
He said: «2011 was a turning point for the sector when the money management funds Her attractive investments began offering big discounts in the fees, and has become the direction of low fees existed since then, but weak in the year current sector performance will accelerate this trend».
However, Michael Malcuarti welcomed, director of the Fund VirtNext Investments Ltd Swiss League, the reduction in the fees, saying that the establishment of a hedge fund always going to be a serious a business, and will remain so, so probably will get rich quickly difficult bit, but he says that this is not something bad.