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Hedge funds have charged almost $2 trillion in fees since 1969, says LCH


Published on 2025-01-20 06:20:57 - Reuters
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  • Hedge funds have charged their investors $1.8 trillion in fees from 1969 to the end of December 2024, according to data from hedge fund investor LCH Investments on Monday.

The article from Reuters discusses a study by LCH Investments, which reveals that hedge funds have amassed nearly $2 trillion in fees since 1969. The study highlights that despite the high fees, hedge funds have underperformed compared to the S&P 500 over the same period. Specifically, while hedge funds returned 9.2% annually, the S&P 500 achieved a 10.2% annual return. The fees, which include both management and performance fees, have been a significant source of income for hedge fund managers, with the top 20 managers alone earning $66 billion in fees over the last five years. The report also notes that the hedge fund industry has seen a shift towards larger funds, with the top 20 funds now managing 40% of the industry's assets, up from 20% in 2008. This concentration has led to increased scrutiny on fee structures and performance, especially as investors increasingly question the value provided by these funds.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/finance/hedge-funds-have-charged-almost-2-trillion-fees-since-1969-says-lch-2025-01-20/ ]