A $200m hedge fund charges fees of 1.5-20 (and has 0.4% in other annual expenses), and launches with $190m in LP capital and $400m of assets (2x leverage). Each year the GP returns leverage to 2x, that is, borrows an amount equal to the Fund's size (NAV) at that point, before fees and expenses. So in the first year the Fund borrows $200m. The GP takes the management fees out of the Fund and leaves the incentive fees in the Fund, and the Fund earns gross returns of 12.1%, 14.3%, 5.4%, and -10% over the next four years, respectively. There is no hurdle and margin costs 4.4% annually.

 a. What are the net returns to the LPs each year? 

b. Roughly what gross return would be necessary in the fifth year for the Fund to return to its high-water mark?