Zenith Alpha Challenges Hedge Fund Fee Norms

The fund, overseen by Eschler Asset Management, operates on a philosophy that prioritizes investor returns over industry-standard fee structures. While the typical hedge fund charges a management fee alongside a performance haircut—averaging 1.3 percent and 16 to 17 percent respectively according to Hedge Fund Research—Zenith Alpha bypasses the fixed management cost entirely. De Ris describes this as an inversion of the usual relationship, ensuring that managers only receive an outsized benefit once they have cleared a significant performance threshold.

Zenith’s strategy focuses on equities, managed by a team that includes Christian Putz, Edward Lam, and Oliver Mihaljevic, alongside de Ris. The fund currently maintains a capacity of $25 million for its founders' share class, targeting sophisticated investors and family offices. Performance metrics appear strong, with the fund recording a 14.4 percent return inception-to-date through May 2026. By maintaining a hands-off approach to individual investment decisions—inspired by the decentralized management style of Warren Buffett—the firm seeks to combine high-conviction strategies with centralized compliance oversight.

This move comes as the broader hedge fund sector experiences a rebound. After years of stagnation, industry assets recently surpassed $5 trillion, supported by double-digit returns in 2025. As Zenith scales, de Ris plans to eventually appoint Eschler as the UK Alternative Investment Fund Manager, with potential future expansion into institutional share classes to accommodate larger capital inflows.