Institutional Investors

Investors can still get better deals, says Towers

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A new Towers Watson report on hedge funds takes the view that the ideal division of profit sharing is two-thirds to one-third split of alpha between investors and managers respectively.

The UK-based consulting firm says it believes that structures, fees and terms are equally important in achieving a structure that better aligns the interests of funds with investors.

“We do not believe that ‘cheaper is better’, but we do think that the combination of a hedge fund’s fee and portfolio exposures (gross, net and beta) should be structured to allow for a more reasonable alpha split between the