Hedge Funds

Family office panel: Lower fees are "the most sustainable alpha"


Wealthy families reap “alpha through negotiation,” panel says.

Looking to raise money from wealthy families? Start by cutting fees.

That was the message from a packed panel regarding issues facing the family office investor, sponsored by The Alliance of Alternative Asset Professionals and held last night at Bloomberg’s midtown Manhattan headquarters.

Given the uncertainty in finding consistent returns year after year from a single fund, families are increasingly pushing for “alpha through negotiation” by pressing for fee discounts that were once reserved only for the largest institutional allocators, said Stephen McCarthy, senior vice president of KCG Capital Advisors. “That’s the most sustainable alpha there is.”

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