Utah drives the alignment of investor and manager interests

Tue Mar 2, 2010



A new era begins with new ground rules on hedge fund fees, structures and transparency


A new era begins with new ground rules on hedge fund fees, structures and transparency

By Susan Barreto

It has been more than a year since the Utah Retirement System fired a shot that is still reverberating around the world. The pension fund, which declined to participate in this interview, has succeeded, however, to score the ultimate goal: the alignment of interests between investors and managers.

Changing the rules of engagement is never easy and, for Utah Retirement System's Larry Powell, his straight-forward proposals could have been an easy deal breaker for hedge fund managers seeing improving returns in the latter half of 2009.

It seems that Utah Retirement System has been able to move forward strategically, while still negotiating lower fees, greater transparency, and deferred incentive fees with new as well as existing hedge fund managers. Similar negotiations have brought many of their institutional peers to a standstill, but...

ISSN: 2151-1845 / CDC10004H

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