>> Wall Street's super rich are eating humble pie at the annual preeminent gathering of Wall Street's richest and most powerful players this week known as the SALT Conference in Las Vegas. Hedge fund heavyweights like Leon Cooperman of Omega Advisors, Kyle Bass of Hayman Capital, and David Rubeinstein of Carlyle all agree it's time to change the way the industry works.
Reuters hedge fund reporter Laurence Delavang says the so called smartest guys in the room are finally listening up.>> For years clients have griped about high fees, and low transparency. But after several years of under performance swaggering managers are negotiating on these points often for the first time lowering their fees, increasing transparency, and acknowledging they need to do a better job of communicating about the value they add.
>> But their charm offensive may come too late for some. Billionaire hedge fund managers are under fire on many fronts. Vilified on the campaign trail from the right and the left led by Donald Trump and Hilary Clinton. Dumped by pension funds run by local governments for low gains and high fees with one New York City official declaring, quote, let them sell their summer homes and jets and return those fees to their investors.
Others however, welcomed the conciliatory tone.>> Clients of hedge funds are happy that the managers are finally negotiating the lower fees and increased transparency. But at the same time a loss is a loss and so they're considering reducing their exposure to hedge funds or at least consolidating the managers they have to the winners.
>> But with the conference taking place at the ritzy Bellagio Hotel on the Las Vegas strip, the industry has some way to go to change its image as Wall Street fat cats living off of fees, their returns aren't justifying.