A move by HBK focuses attention on other big name
It started as a seemingly benign request by Dallas-based HBK
Investments to pass a number of expenses - such as telephone
charges, research and bills for outside services - on to
investors in addition to the 1.5% management fee. HBK told
investors that these expenses wouldn't total more than 30 basis
points and said that it was vital to keeping the firm
Investors bought the story and approved the change at a
shareholder meeting in November. However, the HBK move has
focused attention on the thorny subject of passing on expenses
to investors. Many investors are now concerned that it is
becoming a major trend - a very dangerous trend that will end
the alignment of interests between managers and investors that
has existed in the industry ever since the days of A.W.
Over the years, the industry fee...