This podcast episode explores the efforts of institutional investors to lower fee burdens in the hedge fund industry and increase net returns. It discusses the effectiveness of advocacy for fee reductions and highlights the importance of taking action to achieve these reductions and improve hedge fund performance. The section also examines different approaches to hedge fund fees, including redeeming managers who do not adjust fees, advocating for better terms, and creating innovative fee structures. It emphasizes the market power of large managers in negotiating terms, the misalignment of interest that can occur between managers and allocators, and the determination of managers' fees by market demand and supply.
