The Complexities of Pass-Through Fees in Hedge Funds

This chapter explores the controversial nature of pass-through fees in multi-strategy hedge funds, revealing how these fees are used to cover various operational costs. It contrasts traditional hedge fund models with modern strategies, highlighting investor frustrations and expectations regarding performance and fee structures. Additionally, the discussion addresses a significant shift towards buffer ETFs, showcasing the need for sustainable investment approaches that prioritize long-term returns over short-term gains.