With this financial input comes bargaining power many

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With this financial input comes bargaining power. Many hedge funds - particularly those that suffered from damaging investor redemptions last year - are already restructuring their funds and offering fee discounts to hold on to investors and catch early allocations. Centaurus Capital, the London-based risk arbitrageur and activist fund, has relaunched itself with a 1.5 and 15 model for its new flagship CIRAF fund. SRM Global, the Monaco fund run by former UBS trader Jon Wood, is in the process of offering investment in a new fund to clients in its existing portfolio and is offering to waive performance fees until initial investments have doubled.
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Page 2 of 2 2009 Factiva, Inc. All rights reserved. Even so, established hedge fund group SAC, run by Steven Cohen, continues to raise money for its flagship strategy with fees of 3 and 50 per cent - the highest in the industry. Many managers are adamant they will not lower fees, despite the pressures. Investors do not necessarily see this as a bad thing either. "We're happy paying 2 and 20 for genuine alpha," says a representative of one London-based fund of hedge funds. "The way we look at it, strategies that charge less, historically speaking, have delivered less." Emily Porter, hedge fund portfolio manager at the Universities Superannuation Scheme, which plans to invest some £1bn ($1.7bn) in about 25 hedge funds over the next year or so, thinks that while fees are
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