This article appears courtesy of Institutional Investor
Source: Alternative Investment News
Mark Faro
Clifford Asness, managing and founding principal of AQR Capital Management, believes hedge fund managers should reexamine the way lockup provisions are applied. An inherent problem with lockups is that a manager can earn money from a performance fee one year and then be down the next with investors locked in, said Asness. A way to correct this would be to postpone the collection of performance fees until the end of the lockup period, he told attendees during a panel discussion at a recent event at New York University.
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