Element Capital to Raise Fees to 40%

Element Capital to Raise Fees to 40%

Assessment

Interactive Video

Business

University

Hard

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The video discusses the trend of hedge funds reducing fees post-financial crisis, with most funds charging around 1% management and 15% performance fees. However, some funds like Element, which have shown exceptional performance, continue to charge higher fees. The video highlights that investors are willing to pay these fees if the performance justifies it. It also mentions other funds like those managed by Greg Coffey and Allen Howard, which charge high performance fees. The video concludes by discussing the importance of fund size and infrastructure in attracting large investments from entities like pension funds.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What trend has been observed in hedge fund fees since the financial crisis?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What factors contribute to investors' willingness to pay high fees to hedge funds?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

How does Element manage to charge high fees despite the general trend of fee reduction?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What unique aspect does Element have regarding its management and performance fees?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

Why might large pension funds prefer to invest in larger hedge funds like Element?

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