Clients of Seth Klarman’s Baupost Group pulled roughly $7 billion from the hedge fund in the past three years, losing patience with the famed value investor after a decade of lackluster returns. Most

Jeff Talpins’ macro trading hedge fund Element Capital Management returned more than $6 billion last year, shrinking its asset base and stepping closer to managing mostly internal money.

Of the $3.7 trillion in profits they have earned as an industry since 1969, nearly half or a staggering $1.8 trillion was gobbled up as fees, according to estimates by LCH Investments, a fund of hedge funds. With soaring assets, hedge funds have raised their charges to 50.4% of gains, up from the roughly 30% they earned until the early 2000s.

Investors in hedge funds often gripe about high fees. A new report puts the problem in sharp relief.

Hedge funds have charged their investors $1.8 trillion in fees from 1969 to the end of December 2024, according to data from hedge fund investor LCH Investments on Monday. Over the past 55 years, hedge funds have kept roughly half of the money they make from trading profits,

The world’s largest hedge funds sustained their consistent track records in 2024, though most would have underperformed an investment in an S&P 500 index fund.