While the traditional ‘2 and 20’ hedge fund fee structure has come under pressure in recent years, with managers varying their terms to attract and retain investors, Pershing Square Capital Management is benefitting from a ‘2 and 10’ approach to work, according to founder Bill Ackman.
Speaking in an interview with the New York Post this week, Ackman said that rather than expecting his staff to be in the office five days week, 12 months a year, the firm has adopted a more flexible policy. Full-time office attendance is expected for ten months of the year (September to June) with staff then free to work from wherever they want during July and August.
“We’ve experimented with that for two years and that’s worked well, people like the balance, and it works for our business.” said Ackman.
There is a caveat however, with Ackman adding that “If there’s something where we need to bring everyone together, you show up”.
Likewise during the ten office months of the year, staff can use “best judgement” on office attendance if there’s something they “need to do like a doctor’s appointment or working from home one day”.