• Home
  • About Us
  • Contact
  • Subscribe
  • Your Account
  • Login
No Result
View All Result
Monday, May 29, 2023
Alternatives Watch
  • Home
  • Hedge Funds
    • Manager News
    • Mandates
    • Service Provider News
    • CTAs/Managed Futures
  • Private Equity
    • Manager News
    • Mandates
    • Service Provider News
  • Private Credit
    • Manager News
    • Mandates
    • Service Provider News
  • RE/Infrastructure
    • Manager News
    • Mandates
    • Service Provider News
  • Investor News
    • Endowments and Foundations
    • ESG
    • Pensions
    • Platforms
    • Consultants
  • Research
    • Investor Scorecard
    • Manager Scorecard
  • Subscribe
  • Home
  • Hedge Funds
    • Manager News
    • Mandates
    • Service Provider News
    • CTAs/Managed Futures
  • Private Equity
    • Manager News
    • Mandates
    • Service Provider News
  • Private Credit
    • Manager News
    • Mandates
    • Service Provider News
  • RE/Infrastructure
    • Manager News
    • Mandates
    • Service Provider News
  • Investor News
    • Endowments and Foundations
    • ESG
    • Pensions
    • Platforms
    • Consultants
  • Research
    • Investor Scorecard
    • Manager Scorecard
  • Subscribe
No Result
View All Result
Alternatives Watch
No Result
View All Result

New hedge fund fee calculator offers investor insight

Susan BarretobySusan Barreto
September 29, 2020
in Hedge Funds, Manager News
Pixabay/Pexels

Pixabay/Pexels

ShareTweetShareSendSend

Quantitative investment firm Ramsey Quantitative Systems (RQSI) wants to provide investors a more transparent view of fees they are already paying hedge fund managers.

The firm is offering up a new investment fee tool call Fee-Fi-Fo-Fum that collects manager fee data and analyzes the real fees investors are paying for hedge fund performance.

The Louisville, Kentucky-based $570 million firm said it generates a fair fee structure based on the core nature of a return stream. The simple online calculator allows investors to compare their current manages’ fees to see how they compare to RQSI’s recommended model, 2-and-20 and the recently adopted 1-or-30 structure.

“We believe that fees should hinge upon the impact of the fund in the context of the entire portfolio,” said Neil Ramsey, CEO of RQSI. “Our goal is not to challenge our competitors’ fee structures, but to educate investors on how to assess management and incentive fees when making important investment decisions.

For instance, the investment fee calculator weighs criteria such as Sharpe ratio, correlation to benchmark, annualized volatility, track record length and allocation size.

RQSI said its fee approach is more nuanced in that rates are adjusted based on whether the chosen product is complementary and additive to an investor’s core portfolio. The firm recently began offering customizable alternatives to support its focus on portfolio fit by charging fees only for value-added performance.

This year RQSI launched the qubit DAY Fund, which is focused on liquid public market yield-oriented strategies, specialty finance and direct lending.

According to the firm’s March ADV filing, its own fee structures vary by fund type with management fees and performance fees different between registered fund assets and managed account assets.  

According to Ramsey, the Fee-Fi-Fo-Fum tool gives insight into answering questions such as: What kind of performance would a manager need to produce to earn the standard 2-and-20? How much is an equity long/short manager that’s 40% correlated to the S&P 500 with a 10% annualized volatility and 1.0 Sharpe ratio worth? What justifies a larger expense ratio for a large cap equity ETF than a bond ETF?

Tags: Long/shortQuantitative Investing
ShareTweetShareSendSend
Previous Post

Citco creates a new data platform

Next Post

HFs researching ESG weigh demand, returns

Related Posts

People moves for week of May 26
Hedge Funds

People moves for week of May 26

Chatham sounds warning on RYAM debt maturities
Hedge Funds

Chatham sounds warning on RYAM debt maturities

CPP allocates nearly $6bn to 2023 private equity vintage
Pensions

CPP allocates nearly $6bn to 2023 private equity vintage

A balancing act: U.S. managers eye a new structure in a new jurisdiction
Features

A balancing act: U.S. managers eye a new structure in a new jurisdiction

Event driven manager Taconic appoints Kempner as co-CIO
Hedge Funds

Event driven manager Taconic appoints Kempner as co-CIO

Next Post
HFs researching ESG weigh demand, returns

HFs researching ESG weigh demand, returns

Log In/Out

Lost your password?

Search the AW Archives

No Result
View All Result

Recent News

People moves for week of May 26

People moves for week of May 26

Chatham sounds warning on RYAM debt maturities

Chatham sounds warning on RYAM debt maturities

Godspeed raises $250m for second investment program

Godspeed raises $250m for second investment program

CPP allocates nearly $6bn to 2023 private equity vintage

CPP allocates nearly $6bn to 2023 private equity vintage

Be an Alts Insider

Sign up for your FREE daily alts news briefing

Subscribe

Subscribe to AW
Alternatives Watch

© 2019-2022, All Rights Reserved  |  BMV Digital

Navigate Site

  • Investor News
  • Private Equity
  • Private Credit
  • Hedge Funds
  • Real Estate/Infrastructure
  • Subscribe
  • Your Membership
  • Terms of Service
  • Privacy Policy

Follow Us

No Result
View All Result
  • Home
  • Hedge Funds
    • Manager News
    • Mandates
    • Service Provider News
    • CTAs/Managed Futures
  • Private Equity
    • Manager News
    • Mandates
    • Service Provider News
  • Private Credit
    • Manager News
    • Mandates
    • Service Provider News
  • RE/Infrastructure
    • Manager News
    • Mandates
    • Service Provider News
  • Investor News
    • Endowments and Foundations
    • ESG
    • Pensions
    • Platforms
    • Consultants
  • Research
    • Investor Scorecard
    • Manager Scorecard
  • Subscribe

© 2019-2022, All Rights Reserved  |  BMV Digital

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Be an alts insider

Start your days in the know with our free newsletter

No, I don't want to be an alts insider

Thank

You!

Follow us
on LinkedIn

Lost your password?

This Website Uses Cookies
We use cookies on our website to provide necessary functions. By clicking “Accept”, you consent to the use of all strictly necessary cookies.
Do not sell my personal information.
Cookie Settings Accept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Save & Accept
Powered by CookieYes Logo