The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Vanguard, Or All the Hedgers? Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, September 19, 2014

Vanguard, Or All the Hedgers?

News summary by MFWire's editors

It's been a rough media week for hedge fundsters. On Monday $300B pension plan giant CalPERS told the world that it's leaving hedge funds behind, a move whose potential implications have subsequently been widely written about, even here on MFWire. And now the Wall Street Journal is comparing the hedge fund industry as a whole to low-cost mutual fund titan Vanguard [profile].

Yesterday the WSJ's Kirsten Grind reported on Malvern, Pennsylvania-based Vanguard hitting the $3-trillion assets under management milestone. Citing eVestment data, the WSJ puts that $3-trillion figure in perspective by noting that Vanguard's AUM now equals all hedge funds' AUM combined as of May.

Yet by a different metric, revenue, the hedgers are probably still much bigger. If hedge fund firms just earn the 200-basis-point piece of the old "two and twenty" pricing (i.e. two percent of AUM and 20 percent of gains), that would put the hedge fund industry's total annual revenue at around $60 billion. Yet Vanguard, with its low-cost approach and plethora of indexed products, probably averages much less than 100 bps on its $3 trillion.

So, by client assets Bill McNabb and his team now rivals hedgers. By fees, probably not so much, at least not yet. 

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use