Will Hedge Fund Fees Ever Come Down?

A new survey finds that hedge fund investors are just fine with single-digit returns. So why are they still paying double-digit fees?

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Hedge fund investors seem to be suffering from Stockholm syndrome.

Average returns have been mediocre for so long that investors now seem to be accepting them as normal. How else can you interpret the results of the latest survey from London-based data tracker Preqin?

The survey, which polled hedge fund investors, found that two thirds of them — in other words, a large majority — look for returns of between 4 percent and 6 percent.

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