ABC Hedge Fund, which specializes in global macro strategies, had a 5% rate return in a year

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ABC Hedge Fund, which specializes in global macro strategies, had a 5% rate return in a year in which the MSCI World Index returned 8%. Despite ABC's relative underperformance, it charged investors a performance (incentive) fee. Why?

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International Business

ISBN: 9781292274157

8th Edition

Authors: Simon Collinson, Rajneesh Narula, Alan M. Rugman

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Posted Date: Dec 27, 2023 06:22 AM

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ABC Hedge Fund, which specializes in global macro strategies, had a 5% rate return in a year

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Hedge funds often charge investors a performance or incentive fee as part of their compensation structure regardless of whether they outperform or und... View the full answer

International Business

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