Hedge Funds

Larger fees for larger funds

by

The largest hedge funds continue to increase fees, and it hasn’t hurt their ability to raise assets, providing further evidence of what every retailer knows: When dealing with luxury goods, customers often think pricier means better.

 

An analysis of the AR database shows that the largest firms, those managing $1 billion or more, increased their management and performance fees in 2010, in some cases substantially. Nevertheless, it seems investors didn’t experience sticker shock, as the AR Billion Dollar Club increased assets by about 10% last year.

 

As of year-end 2010, among the nearly 1,900 funds in