Everything on Hedge Fund Selection

Multi-strategy hedge funds with management co-investment are preferred to ensure alignment of interest and fee transparency. This mitigates the risk of high fees without corresponding performance.

Impact: Ensures that performance incentives are aligned with investor outcomes, reducing agency costs and improving long-term returns.

— from Perpetual's Alternative Credit Strategy for Billions · OHNE AKTIEN WIRD SCHWER - Tägliche Börsen-News· Oct 31, 2026

Alignment of incentives in hedge funds is critical, with a preference for multi-strategy funds where management invests their own capital and pays pass-through fees. This ensures cost discipline and genuine performance.

Impact: Selecting hedge funds with strong alignment can reduce fee drag and improve net returns, enhancing the overall portfolio performance.

— from Alternative Credit Strategies for Multi-Billion Euro Portfolios · OHNE AKTIEN WIRD SCHWER - Tägliche Börsen-News· Oct 31, 2026