What are the fees for hedge funds in 2023?

Fees range widely but average around 1-2% of assets under management based on current fee data: In Q1 2023, the average management fee was 1.36% overall, a record low. For new hedge fund launches in Q1 2023, the average management fee declined to 1.2%.

How did hedge funds perform in 2023?

The hedge fund industry was up 7.9% for the year on an asset weighted basis . This compares to the mean figure of 8.5%, suggesting that, on average, larger hedge funds have underperformed. The median performing hedge fund returned 7.2% for the year.

What does the typical hedge fund charge its investors?

A management fee: annual fee charged by a manager to cover the operating costs of the investment vehicle. The fee is typically 2% of a fund's net asset value (NAV) over a 12-month period . A performance fee: also known as an incentive fee, this second fee is viewed as a reward for positive returns.

How many hedge funds are there in the world in 2023?

As of 2023, there were roughly 500 hedge funds operating under a credit investment strategy.

What are the costs of a hedge fund?

Annual fund administration fees average $24,000 for emerging hedge funds and more than $100,000 for large, complex funds. With respect to establishing a U.S. hedge fund, average hedge fund startup costs range from $50,000 to $100,000, and first- year operational costs usually total $75,000 to $150,000 .

What is the most profitable hedge fund in 2023?

Top Hedge Funds List Fund Manager 3-Year Performance MW Turnover Silver Point Capital Edward Mule 88.59% (23.55% Ann.) 66.67% Brave Warrior Advisors Glenn Greenberg 77.99% (21.19% Ann.) 15.63% Elm Ridge Management Ron Gutfleish 76.98% (20.96% Ann.) 7.69% Scion Asset Management Michael Burry 74.32% (20.35% Ann.) 63.33% 18 more rows

What is the most profitable hedge fund in the world?

Kenneth Griffin Citadel has now made $74 billion for investors since its inception in 1990, more than any other hedge fund firm.

What is the best performing hedge fund in the world?

Citadel LLC is one of the largest hedge funds based in the U.S., with approximately $92.46 billion in total assets under management as of Sept. 30, 2023. Citadel has generated roughly $74 billion in total gains since its inception in 1990, making it the most successful hedge fund of all time.

How much does Point72 charge hedge funds?

Point72 Asset Management Fees Point72 doesn't specify an exact fee schedule for its investment funds, but the firm says annual rates typically range up to 2.85% .

What is the best fee structure for a hedge fund?

Despite the rise of alternative fee structures and investor pressure for fee reductions, the 2 and 20 model remains the most common fee structure for hedge funds. Its simplicity and clarity make it a preferred choice for many fund managers and investors alike.

How many hedge fund billionaires are there?

In total, Forbes counts 47 hedge fund billionaires who have a combined net worth of $312 billion, up slightly from the same number in 2022 who were worth $310 billion.

How much do hedge funds typically return?

Based on recent data, the average annual return on investment for investors in a typical hedge fund is around 7.2% , with a Sharpe ratio of 0.86 and market correlation of 0.9. However, it's important to note that performance can vary significantly among different hedge funds.

How much money is in hedge funds globally?

Hedge funds are the ultimate asset class for ultra wealthy investors. Catering to the needs of high- and ultra-high net worth individuals, worldwide hedge funds manage more than $4 trillion in assets.

Which country has the most hedge funds?

At the end of that year, the 241 largest hedge fund firms in the United States collectively held $1.335 trillion. In April 2012, the hedge fund industry reached a record high of US$2.13 trillion total assets under management.

Global: average hedge fund fees 2023 | Statista (2024)

Table of Contents

Average performance and management fees of hedge funds worldwide in 2023, by hedge fund strategy Statistics on " Hedge funds " Other statistics that may interest you Hedge funds Topics FAQs References

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Published by Statista Research Department, Jan 30, 2024

As of 2023, the weighted average of performance fees was considerably higher than that of management fees. This is typical for traditional hedge funds, as it is very common to employ a two- and 20-fee structure. Management fees are traditionally two percent of the fund's net asset value, while the performance fee is 20 percent of the fund's profits. While some hedge funds, such as the long-biased hedge fund have divested from this rule the performance fee of roughly 10.5 percent is still higher than the management fee of 0.86 percent.

Average performance and management fees of hedge funds worldwide in 2023, by hedge fund strategy

Characteristic	Management fees	Performance fees
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Release date

October 2023

More information

Region

Worldwide

Survey time period

2019 to September 2023

Supplementary notes

All data is sourced from Aurum Hedge Fund Data Engine. Containing data on around 3,200 active hedge funds representing around 2.85 trillion U.S. dollars of assets.

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