The majority of fees for UCITS ‘clones’ are – officially at least - lower or the same as their hedge fund counterparts according to new research from HedgeFund Intelligence.
Some 46 funds have the same fees or lower management fees and 56 have the same or lower performance fees. Only 16 have higher management fees and six have higher performance fees.
HedgeFund Intelligence looked at 62 hedge fund and the clone onshore versions of funds and the monthly tracking errors appear to be minimal. Some 36 funds have a tracking error of less than 3%. This is made up of 14 funds that have less than 1% tracking error, 13 have an error margin of 1% to 2%, nine funds have 2% and 3% and four funds