Sky-high fees for $2B+ PDT mega-launch hearken back to happier times for hedge funds
October 16, 2012
Rob Copeland
Peter Muller's obsessively secretive quantitative firm reels 'em in despite fees 50% higher than average.
| |
|
| |
Peter Muller at the 2008 Absolute Return Symposium |
For the chance to invest in Peter Muller's new PDT Partners hedge fund, all you need is $10 million and a tolerance for unusually high fees. And a time machine.
PDT Partners, which was spun out of Morgan Stanley this year, has already closed its flagship quantitative strategy to new capital after raising $1.5 billion, according to potential investors and industry executives who have met with the firm. The capital has flowed in despite PDT's stated management and performance fees of about 3% and 35%, those people said, well above the industry norm of 2% and 20%, and double or even triple what many new launches whittle themselves down to in order to attract day-one money.
The Partners fund is expected to begin trading in January, according to people close to the firm.
Filings say that PDT reserves the...
TAKE A FREE TRIAL
The full contents of this article are available to Absolute Return subscribers and trialists only.
To continue reading please, take a free trial, subscribe or log in.
Subscribe
Subscribers have unlimited access to all current and archive content. Start your subscription today - click on the button below.
Subscribe now