LONDON/NEW YORK (Sept 15): Hedge funds across the globe are cutting their management fees as they struggle to attract investors in the face of weak returns, industry data shows. The move by Caxton and its peers to cut fees this year coincides with a sharp slowdown in the growth of assets under management. The hedge funds in the Eurekahedge data have added a total of just US$14.7 billion so far this year, compared with US$108.7 billion in 2015 as a whole and US$343 billion in 2007. Hedge funds were traditionally known for a '2 and 20' fee model before the financial crisis — an annual management fee of 2% plus a 20% cut of any profits. Funds have also cut performance fees, from an average of 18.77% across the global industry in 2007 to 16.69% today, said Eurekahedge, an independent research firm which provides databases for funds and investors.

Source: The Edge Markets September 15, 2016 12:45 UTC