The Bloomberg Big Take: In 2023, the main hedge fund at Balyasny gained 15.2%. Investors walked away with a gain of just 2.8%. The rest they paid in fees, totaling more than $768 million. So-called passthrough fees are one of the most coveted perks of running a multistrategy hedge fund. Investors are so eager to pony up money that they effectively write a blank check, agreeing to cover just about any expense managers deem reasonable - in good times and bad. Read the Big Take story by myself and Weihua Li. Edited by David Scheer. With beautiful data visualization graphics by Kyle Kim & Armand Emamdjomeh Take a minute to scroll the "all terms" list of more than 140 passthrough fees that clients pay for -- spanning everything from talent compensation to private-jet flights, mobile expenses and snacks. https://lnkd.in/e6BkCBkj
Hema Parmar Clear breakdown of pass through expenses highlights the importance of granular financial reporting. Makes you think about similar transparency needs in other investment structures.
Great peice Hema Parmar
Chief Investment Officer at Seligman Investments / Columbia Management
4wGreat article, Hema. I wonder if allocators' ardor for multi-strat funds ends up cooling as a result of these egregious fees.