Self-proclaimed hedge fund “boogeyman” Poul Nyrup Rasmussen, the Danish president of the Party of European Socialists, wants to reinvent the way hedge funds operate.
And by reinvent, we mean rein in, limit and heavily regulate very aspect of the industry. His latest idea: cut hedge fund fees.
Speaking today in London at a hedge fund and private equity meeting, Rasmussen said that funds should switch from the 2/20 model they typically charge, to a 0.5% and 15% structure, according to Bloomberg.
Rasmussen, who was once the Danish prime minister, has been spearheading a European campaign to introduce hedge fund regulation. The regulation would include a limit on leverage and require the use of European banks.
Rasmussen jokingly told the audience to get over themselves cause they will still make a boatload of money.
“We’re in a new phase, guys, I wouldn’t say ‘friends,'” Rasmussen said. “Two plus 20 is not a state of nature. We need to go and review it,” he said, according to Bloomberg:. “You will not die of hunger.”
But that didn’t go too well with the managers in attendance.
One audience member asked if Rasmussen’s goal was to “kill” the City of London’s financial business, where 80 per cent of Europe’s hedge fund assets are managed. Another asked whether the U.K. should withdraw from the European Union rather than submit to the regulation, drawing applause from the crowd.