Lee Ainslie’s $10 billion Maverick Capital Ltd. is offering 0% performance fees to some investors, the latest big-name hedge fund to debut lower fees after posting continued losses. Maverick’s flagship stock-picking hedge fund is down 2% this year through September after losing roughly 10% last year, missing out on the rally this year that has propelled U.S. stocks to record highs. Maverick’s new “recovery share” class would let existing clients invest more money in its hedge funds at 1% management fees and no performance...
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.