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Article: Alpha justifies fees; Report makes case for hedge fund-of-fund managers.(Alexander M. Ineichen)(Brief Article)
- Article from:
- Pensions & Investments
- Article date:
- October 15, 2001
- Author:
CopyrightCOPYRIGHT 2001 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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LONDON - When Alexander M. Ineichen gazes out over the hedge fund universe, he doesn't see a bubble about to burst, he sees a bulge that's destined to recede.
He doesn't see unnecessarily high fees, he sees fair compensation for skilled active managers who generate alpha.
And he doesn't see fund-of-funds managers as merely another layer of fee-collectors, he sees them as essential tools for adding value in an opaque and inefficient market that is quickly adding more mediocre and outright bad managers than quality managers.
``If the alpha in the hedge fund universe can only be unlocked through market participants with a competitive advantage, but ...