Hedge Funds

Prentice moves to single fee and lockup structure

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Michael Zimmerman's $2.1 billion consumer and retail stock-focused Prentice Capital Management has eliminated its two-tier lockup and fee arrangement, moving all investors to a two-year lockup and standard fees of 2% of assets and 20% of profits, with quarterly liquidity.

The changes will be effective immediately for prospective investors; existing investors will see their terms change on January 1, 2008.

Since the New York firm spun out of Steve Cohen's SAC Capital Advisors in 2005, it had offered its flagship long/short fund, Prentice Capital, through two share classes: a 1-year rolling lockup carrying a 30% performance fee and