performance fees on hedge funds? - Are You Prepared For The Coming Economic Collapse And The Next Great Depression?

		Are You Prepared For The Coming Economic Collapse And The Next Great Depression? > Business Survival Techniques > I Need Help !! - General Questions > Financing, Raising Money, Venture Capital > Financing Forum > HEDGE FUNDS > Hedge Fund Financing - Open Discussion
performance fees on hedge funds?

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Hedge Fund Financing - Open Discussion A hedge fund is a private investment fund open to a limited range of investors that is permitted by regulators to undertake a wider range of activities than other investment funds and also pays a performance fee to its investment manager. Each fund will have its own strategy which determines the type of investments and the methods of investment it undertakes. Hedge funds as a class invest in a broad range of investments extending over shares, debt, commodities and so forth. As the name implies, hedge funds often seek to offset potential losses in the principal markets they invest in by hedging their investments using a variety of methods, most notably short selling. However, the term "hedge fund" has come to be applied to many funds that do not actually hedge their investments, and in particular to funds using short selling and other "hedging" methods to increase rather than reduce risk, with the expectation of increasing return. Hedge funds are typically open only to a limited range of professional or wealthy investors. This provides them with an exemption in many jurisdictions from regulations governing short selling, derivative contracts, leverage, fee structures and the liquidity of interests in the fund. A hedge fund will typically commit itself to a particular investment strategy, investment types and leverage levels via statements in its offering documentation, thereby giving investors some indication of the nature of the fund. The net asset value of a hedge fund can run into many billions of dollars, and this will usually be multiplied by leverage. Hedge funds dominate certain specialty markets such as trading within derivatives with high-yield ratings and distressed debt.

Discussion On performance fees on hedge funds?

how high are they ussually? are they worth it? on performance fees on hedge funds? in the Hedge Fund Financing - Open Discussion at Are You Prepared For The Coming Economic Collapse And The Next Great Depression?

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05-16-2008, 11:54 PM

#1 (permalink)

ebonyeyez

Junior Member

Points: 1,819

performance fees on hedge funds?

how high are they ussually? are they worth it?

06-29-2008, 01:19 AM

#2 (permalink)

elvenrunelord

Senior Member

Points: 2,297

humm

Around twenty percent seems to be the average fee. This seems a little high to me. In my opinion any business in the business of handling money in large amounts that is charging more than a simple 1-2% fee is a close kin to the Mob. lol

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