A $12 Billion Asset Manager Wants Out of the Hedge Fund ‘Fee Racket’

  • CEO Wierzycka says hedge funds failing to work as designed
  • Cape Town-based money manager has fired hedge-fund managers
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South African money manager Sygnia Ltd. closed all its hedge-fund products, ending a 13-year history with an investment strategy its chief executive officer now calls a ruse to pocket fees.

“Once you know that the emperor has no clothes you cannot in good conscience support what has become a management-fee racket,” Chief Executive Officer Magda Wierzycka wrote in an opinion piece in Johannesburg-based daily newspaper, Business Day.