Bob Elliott: New hedge fund 444 plan prompts allocator pushback over fees and liquidity

Bob Elliott: New hedge fund 444 plan prompts allocator pushback over fees and liquidity
Hedge fund 444 plan draws allocator concerns

Bob Elliott, co-founder / CIO at Unlimited, highlights a growing backlash among allocators to the new hedge fund "444 plan," which features a 4% management fee, 45% performance fee, and a four-year lockup for returning capital.

Many allocators are increasingly seeking funds with lower fees and greater liquidity, according to Elliott.

Elliott previously identified early signs of housing market weakness, noting that the sector cooled before a recent long-end yield spike as shown in March Case-Schiller data. He also attributed April's increase in new orders at Boeing to backlog growth, stating that this may postpone any near-term production boost, according to his earlier comments. These observations add to Elliott's track record of focusing on developing trends and structural shifts within different segments of the market.

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