Sky-high fees for $2B+ PDT mega-launch hearken back to happier times for hedge funds

By Rob Copeland

Tue Oct 16, 2012

Read more:



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...

ISSN: 2151-1845 / CDC10004H

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