HedgeAlytix Library and Blog

Hedge Fund Fees: Value-added of Hedge Fund Management

Warren Buffett has been criticizing hedge fund managers for charging investors a 2% management fee and 20% performance allocation, and then delivering poor results. He is – to a certain degree – correct. Too many funds are unable to compete with the inexorable gains posted by securities over the past eight years or so. However, many other alternative investments have been soundly beating the market and passive index funds. I think we all agree that managers who can consistently outperform should be compensated for that outperformance.

The HedgeAlytix research platform provides the Intelligent Tools to search for, evaluate, compare, track and contact managers on the right side of the performance matrix. The online application focuses on performance, not personality or prestige. Clients tend not to be the "marquee" investors and the funds we monitor similarly are not marquee funds. Look elsewhere if you want information about the multi-billion dollar vehicles that capture the attention of the pundit class.

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Most of you are receiving this message because you had registered and used the CogentHedge platform at some point in the past 16 years. But many of you have not seen the new HedgeAlytix application.

We need you. HedgeAlytix is an independent information source. Our business model depends on a large number of small payments – a 3-month subscription costs only $20 per month. Although the past several years have not been good for hedge funds generally, interest and activity by individual investors and small institutions has begun to pick up. HedgeAlytix remains the sole affordable venue for unbiased information. We need your support to keep that going.

The HedgeAlytix platform uses the same methodology for all investments. Our application provides a level playing field for fund comparisons. Additionally, we offer a range of applicable target benchmarks. This will shortly include the ability to pick your own proxy or even combine indices to create a custom-weighted benchmark.