Will Hedge Funds Change their Fee Structure?

I referenced a fascinating discussion in yesterday’s reads via Meb Faber about “delusional institutional investors” — but here are the specifics:

“There is a relatively wide range of expected returns for hedge fund investments made in 2015. While 5% have very high expectations – of 18% or more – nearly a third (32%) anticipate net returns to be in the order of 15-17% and 30% between 12% and 14%. A further 32% said they are expecting returns of 11% or less, including 1% that anticipated 6-8% returns.”

The quote, and the chart below, come from this report (via BNY Mellon) — its pretty telling:

Source: BNY Mellon

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