Hedge fund investors want fees lowered

Is hedge fund pain your gain?

Hedge fund managers may have to face some upheaval in their industry this year.

After years of subpar returns, industry members are girding for a rough go of it in 2016, with the possible exodus of investor cash and a re-examination of the traditional 2-and-20 fee structure paramount among the changes.

That's according to a survey hedge fund analyst Preqin conducted of more than 500 managers, who indicated a number of concerns. As an industry, hedge funds lost about 1 percent in 2015, just the fourth losing calendar year since 1990, according to HFR, though the industry has a less favorable record when compared to broad stock market averages.

Read MoreHow to beat the market: Own what hedge funds don't

Despite the underperformance, the $2.9 trillion space has continued to attract investor cash. Current assets under management have risen 81 percent since the market lows of 2009. Still, managers fear the tide could begin to turn.

Related Tags