But not all investors are happy with moves to mimic mutual fund products
For a number of years traditional asset management firms have been attempting to muscle their way into the hedge fund business - with varying degress of success. Now the distinction between the long-only world and hedge funds is really starting to blur, as groups like D.E. Shaw, Sierra Global, Lone Pine, Glenview and Maverick have begun adding long-only funds but with hedge fund-style fees, prompting considerable controversy.
One investor says: "I think it's a rip-off." He argues that hedge fund managers earn their high fees by preserving capital in adverse markets. When they eliminate their hedging techniques, all they can offer that traditional long-only money managers cannot is the cache of their names. And traditional long-only managers charge fees of just 30 to 100 basis points.
"If one of our managers did this, we would be out...