Citi Prime Finance (Citi) recently released its “Citi Prime Finance Hedge Fund Business Expense Survey,” a follow up on and expansion of previous reports on hedge fund industry expenses. The report provides an independent analysis of the various costs associated with operating a hedge fund management business; identifies trends and patterns within those expenses among different categories of hedge fund managers; and provides benchmarks so that hedge fund managers can ascertain whether their expense levels are above or below the expense levels of similarly situated peers. This article details key findings outlined in the report. For a discussion of another useful Citi analysis of trends in the hedge fund industry, see “Citi Prime Finance Survey Predicts Hedge Fund Industry Assets Will Nearly Double by 2016 and Highlights Opportunities for Hedge Fund Managers to Grow Assets Under Management,” Hedge Fund Law Report, Vol. 5, No. 25 (Jun. 21, 2012).