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Hedge fund talent war prompts Marshall Wace to charge new “compensation fee”

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Clients of London-based hedge fund Marshall Wace are set to pay a new “compensation fee” as the firm looks to hire and retain top talent in an increasingly competitive recruitment market, according to a report by Bloomberg.

Clients of London-based hedge fund Marshall Wace are set to pay a new “compensation fee” as the firm looks to hire and retain top talent in an increasingly competitive recruitment market, according to a report by Bloomberg.

The report cites an investor letter seen by Bloomberg as revealing that the firm’s flagship $22.5 billion Eureka hedge fund is asking for an additional “compensation surcharge” worth as much as 0.75% of the fund’s value, which will be used to reward those money managers who outperform.
 
With the world’s largest multi-manager platforms offering millions of dollars in signing bonuses, a higher cut of trading profits, and pay-outs for non-compete periods Marshall Wace says the fee is aimed at ensuring “its funds remain positioned for success”. 

The new charge which is capped at 0.75% annually, with Marshall Wace footing the bill if costs exceed that figure, is due to come into effect on 2 October.
 

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