Will Fees Change Substantially? Don’t Count On It

The hedge fund pay structure has endured withering criticism of late, but it’s so baked into the culture of the industry that it will take more than a few years of so-so performance to change it.

Hedge fund fees and lousy performance were a big theme at last week’s SALT Conference in Las Vegas. Most reports made a big fuss over the possibility of meaningful change. My take? Don’t bet on it.

Fees may come down incrementally. But they have been baked into the industry’s culture for so long that there is a sense of entitlement among those who have been in the business for decades, while they are the lure for those just getting into it.

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