Hedge Funds Copy Citadel Fee Model in Fight for Top Asia Traders.

Several hedge funds in Asia, including Nine Masts Capital, Southern Ridges Capital, and Pinpoint Asset Management, are adopting a fee model similar to global giants like Citadel and Millennium Management. This model involves charging clients additional fees to cover various costs, such as employee compensation and life insurance, in order to attract top talent. While this may result in higher fees than traditional models, it allows smaller funds to compete with international firms that offer large signing bonuses. The pass-through fee structure is a departure from the traditional "2 and 20" model, and proponents argue that it is necessary for multi-manager firms with diverse portfolios. Despite weak returns for many hedge funds in Asia, some firms have found success with the new fee model. [Extracted from the article]