Hedge fund fees remain a bone of contention for many investors, with investment consultants continuing to push for better deals and a stream of cut-price products claiming to mimic hedge fund strategies flooding the market.

The pressure to reduce fees is mounting. Several large institutional investors have announced that they will exit the sector, in part due to fees. Notably, the California Public Employees Retirement System, or Calpers, the largest US pension fund and one of the first schemes to invest in hedge funds, said in September last year that it would remove all $4 billion it had in hedge funds. In January, the €156 billion Dutch healthcare scheme announced that it had followed suit.