After a period of lagging performance in its flagship fund, hedge fund firm Maverick Capital Ltd. 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.
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.