Institutional Investors

Utah leads the charge as end investors attempt to change hedge fund terms


US public pension funds and other institutions are now more empowered to negotiate fee arrangements as hedge fund industry performance is challenged and redemption pressure creates an unforeseen restructuring of the traditional 1% and 20% fee model.

Utah Retirement System has taken the lead in suggesting a new fee structure that not only takes into account long-term performance, but also recognises that the management fee structure should be based on actual business expenses, the assets under management and the length of lock-up.

Larry Powell, deputy chief investment officer at Utah, has been leading the