After a period of lagging performance in its flagship fund, hedge fund firm Maverick Capital is introducing a "recovery share class" for certain investors. The share class will have a 0% performance and 1% management fee, compared to the more usual 17.5% and 2% respective fees. Weak stockpicking and defensive positioning, based on US equity valuations, were cited as hampering the fund’s performance this year. In contrast, Vanguard Group (VFX) has been one of the most active investors in recent years, adding $45 billion to its portfolio since mid-2014.
After a period of lagging performance in its flagship fund, hedge fund firm Maverick Capital is introducing a "recovery share class" for certain investors. The share class will have a 0% performance and 1% management fee, compared to the more usual 17.5% and 2% respective fees. Weak stockpicking and defensive positioning, based on US equity valuations, were cited as hampering the fund’s performance this year. The "recovery" shares will reportedly expire when a high-water-mark is reached or previous losses have been made up.