In another sign of the difficulties facing the financial services industry, Camulos Capital has told its investors that if they keep nearly $2 billion with the $2.5 billion hedge fund for the next year, the fund will reduce its fee by 75 basis points to 1.25%, The Wall Street Journal reports. And if the fund makes money between Oct. 1 and the end of 2010, it will reduce its share of profits to 10%, rather than the standard 20%.
At present time, following a 20% decline in the fund through early September, Camulos investors have requested $350 million in redemptions.
The reason the fund is faring worse than many other hedge funds is because of its exposure to corporate credit investments, which, it said, are holding up well. The problem, according to the firms CEO Richard Brennan, is deterioration of the overall market.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.