Asian hedgers fail to earn performance fees

A brutal 2008 will mean that a majority of Asian hedge funds will not charge performance fees, according to published reports. By not reaching previous highs, the general partners for 80% of Asian hedge funds will not be able to take the standard 15% to 20% off the top of any performance until they get back to their previous high-water marks. Management fees of between 1% and 2% of fund assets will still apply. Only about 30% of the 1,000 hedge funds tracked by Singapore-based Eurekahedge Pte. Ltd. reported positive returns for 2008, compared with more than 80% in 2007, according to Bloomberg.