Hedge fund fees fall to lowest level since 2008 financial crisis

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Hedge fund fees declined slightly in Q3 2022, with the average industry-wide management fee declining 1 basis point from the prior quarter to an estimated 1.35%, according the latest HFR Market Microstructure Report.

The average incentive fee, meanwhile, fell by 4 bps to 16.01%, with both estimated fees representing their lowest levels since HFR began publishing these estimates in 2008. 

For funds launched in Q3 2022, average management fees increased by 3 bps from the prior quarter to an estimated 1.35%. Average incentive fees for funds launched in the third quarter of 2022 was estimated at 17.23%, representing a decline of nearly 70 bps from the prior quarter though remaining above the overall industry-wide average.

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