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Hedge fund up 38% wants to stop investors taking out their cash

Bloomberg Published on Thu, Feb 01, 2018 / 3:29 PM GMT+8

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(Feb 1): Quantedge Global Fund, the world’s best-performing quantitative hedge fund last year with more than US$1 billion ($1.31 billion) in assets, is taking the rare step of asking clients to lock in their money for several years even as such arrangements have fallen out of favor with investors.

The US$1.7 billion Singapore-based fund, which advanced 38% last year, plans to introduce two new share classes in February and shareholders will have to switch from monthly liquidity to fixed terms of three or five years, according to a newsletter seen by Bloomberg.

While the fund is keeping its performance fee unchanged at 20%, it’s lowering the 2% annual management fee to 1.8% for the three-year share class and to 1.5% for the one requiring a five-year lockup, it said in the newsletter.