Mandel beats the death spiral
Heard the one about the successful hedge fund manager who
decided to cut his performance fee....yes, cut his performance
fee? It may sound like a joke. But Steve Mandel at the $4.5
billion Lone Pine equity shop is taking an initiative that
represents the first piece of fresh thinking about hedge fund
fees for a long time.
Obviously, Lone Pine isn't a charity and there is a catch,
but it is a whole lot better than everyone else's idea of
raising fees to test just how much the free market will bear.
Behind Mandel's move is a laudable attempt to change one aspect
of the fee structure to increase the astonishingly short life
expectancy of the average hedge fund.
While others think about fleecing investors with higher and
higher fees and adding in lock-ins and redemption penalties,
Mandel is thinking about the whole...