A hedge fund has a 2 & 20 fee structure: 2% of management fee plus 20% incentive fee on fund returns in excess of T-Bill rate. In a performance reporting period, the hedge fund yields 29% when the T-Bill rate is 3%. What are the fees to the hedge fund managers?

Answer rating: 100% (QA)

SOLUTION IN DETAILS To calculate the fees for the hedge fund managers we need to consider both the m... View the full answer