The standard “2 and 20” hedge fund fee model is now used by only 30% of hedge funds, according to an industry expert.

Keith Seibert, managing director at CM Capital Advisors, the investment firm that invests in hedge funds, says the 2 and 20 fee structure — where hedge funds are paid a flat rate 2% management fee as well as a 20% performance fee — is declining. Hedge funds are cutting their fees in response to mediocre performance.