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Published on January 29, 2024 at 9:06 am. / Modified on January 29, 2024 at 12:50 p.m
With unprecedented speed and scale, the monetary tightening carried out two years ago has reshuffled the cards of so-called alternative management. From hedge funds to cryptocurrencies, private equity and corporate bonds, The weather dedicates its monthly financial report to this topic, which is very popular with investors.
The atmosphere is “Winners take everything” in the world of hedge funds. Large providers of alternative funds have been able to attract a significant proportion of new assets in recent years thanks to above-average performance. Their strength allows them to charge fees that are sometimes higher than the traditional “2 and 20” model, namely 2% management fees and 20% performance fees, i.e. the profits made. These high costs don’t necessarily deter customers.
According to a study by LCH Investments, a fund of hedge funds, cited by Bloomberg, hedge funds generated a total of $218 billion (188 billion Swiss francs) in profits after commissions for their clients last year. Of around 10,000 hedge funds worldwide with assets of around $4 trillion, the industry’s 20 largest players generated about a third of the industry’s total profits in 2023.
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