More hedge funds sitting pretty above high-water marks thanks to 2012 performance gains
By Rob Copeland
Tue Nov 20, 2012
Some 54% of the industry in line to charge performance fees, a significant jump.
A broadly positive year of performance so far has left more
than half of hedge funds above their high-water marks,
according to an analysis of Americas-based funds reporting to
the HedgeFund Intelligence database.
Some 54% of funds muscled above the mark as of the end of
the third quarter, compared with 42%
at the beginning of the year, meaning more than half of the
industry is now in line to earn lucrative performance fees over
the holiday season. Though the total is an improvement, it is
still dramatically lower than two years ago, when 74% of funds
were above their high-water marks after two years of strong
gains following the financial crisis (the figures hit a bottom
at the end of 2008, when just 39% of funds were in the
The difference between being above and below the high-water
point can be a...
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