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18 October 2016       Bloomberg

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One of the biggest hedge fund advisers is calling for an overhaul of the industry’s exorbitant and opaque fees.

Albourne Partners, which advises investors that collectively hold more than $400 billion in alternative investments such as hedge funds, will announce a plan on Tuesday that will help investors determine appropriate fees, said Simon Ruddick, the London-based chairman of the adviser. Albourne Partners will collect fee information and set up a mechanism to help investors negotiate the best rates, he said.

“At the moment, fees are the elephant in the room,” Ruddick said in an interview with Bloomberg Television’s Haslinda Amin in Singapore. “With modest returns and for the complexity of investing in hedge funds, I think the industry really needs to take not just a step forward, but a leap forward to being more transparent on the issue of price.”