Will Pensions, Endowments Pull Money From Hedge Funds?

The video discusses the need for funds to adopt more realistic return targets, suggesting a shift from 10% to 6-7% returns. It highlights the challenges faced by pension funds in adjusting return rates due to budget constraints. The concept of dynamic fee structures is explored, though it's noted as uncommon. Blueprint Capital's approach to offering flat basis point fees and working with sub-advisors is detailed. The focus is on mid-market hedge funds, which face difficulties in raising assets despite often outperforming larger funds.

What return target does David Hunt suggest is more realistic for funds?

• 8-9%

• 6-7%

• 5%

• 10%

What is one of the main challenges in changing the return rate on pension funds?

• Low interest rates

• Lack of investment opportunities

• High inflation rates

• Budgetary constraints of municipalities and states

What is a proposed solution for fee structures when the risk-free rate is low?

• Charge a flat fee

• Make the fee structure dynamic

• Eliminate fees altogether

• Increase the fees

What type of fee does Blueprint Capital charge its clients?

• Hourly fee

• Flat basis point fee

• Performance-based fee

• Commission-based fee

Which type of hedge funds is Blueprint Capital focusing on for sub-advisory roles?

• Mid-market hedge funds with $250 million to $2 billion in assets

• Large hedge funds with over $10 billion in assets

• Small hedge funds with less than $100 million in assets

• International hedge funds