We've noted recently that the hedge fund industry has a lot of thinking to do when it comes to its business model. A big issue right now is the period over which limited partners must keep their funds invested. We've noted that there are many who think hedge funds would be much better off with a private equity fund-like investment horizon; that is, they invest in a way that would seem to require investors to say invested for three to five years.

Breakingviews notes Jeff Ubben, of ValueAct Capital, is asking investors to commit their funds for five years. In addition, the fund will not take a performance fee unless it generates gains of at least 12.5 percent a year. We'll see if this catches on. It would appear to be a powerful differentiator at the marketing level.

For more:
- here's the article via the New York Times 

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