Question: For example, imagine a hedge fund managing $200 million with a 2% management fee and a 20% performance fee benchmarked to the S&P 500 total

For example, imagine a hedge fund managing $200 million with a 2% management fee and a 20% performance fee benchmarked to the S&P 500 total return. If the fund earns a 12% return in a year when then S&P 500 total return was 7%, what is the after-fee return for investors? How much does the fund make in fees (dollar amount)?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Froms this Answer this question. By late 2016, Larry J. Puglia had been managing the $33 billion T. Rowe Price Blue Chip Growth Fund (Blue Chip Growth Fund) for more than 23 years. One of the fund's...

Below is the assignment, attached in the excel file is actually all the answers, I need these transferred into my own excel file, answering all the questions below. Integrated mini-case: ?Working...

how do I complete this question Question 1 XYZ Capital is a hedge fund with 100 million of initial investment capital. They charge a 2% management fee based on assets under management at year end and...

Help me solve these questions answer all questions please Each station's budget for the year ending 30 September. 2018 is as follows: GR1 GR2 GTV Budget 2017/18 Budget 2017/18 Budget 2017/18 Shs...

At the start of the year, the value of assets managed by Bank Hedge Fund was $180 million. Over the year, the fund earned a gross return of 15% compared with the market index return of 10%. The fund...

I need help to answer these questions below that are based on the case "Larry Puglia and the T. Rowe Price Blue Chip Growth Fund" 1. How well has the Blue Chip Growth Fund performed in recent years?...

Gazprom Introduction James Bolden, executive vice president of Mobaco, one of the world's largest integrated oil companies, was sitting in his suite at the Metropol Hotel in Moscow. He had a complex...

1.What is the solution for Mr. Bolden's issues (or questions) as stated in the first three paragraphs under the section titled Introduction? Substantiate with calculations 2.Establish the nature of...

ITEM #1 LEARNING FROM THE HEADLINES True to the Learning from the Headlines approach of this course, watch the Part Three Intro Video after you read the short article the video highlights. Notice...

1. Texas Roadhouse (TXRH) is rapidly expanding into new markets and had sales of $1,263M in 2012. Suppose you expect sales to grow at a 15% rate in 2013, but this rate will slow by 2% per year to a...

An electron acquires 7.45 X 10-16J of kinetic energy when it is accelerated by an electric field from plate A to plate B. What is the potential difference between the plates, and which plate is at...

Using the data in problem 27 of Chapter 2 on the Dow Jones Industrial Average: a. Construct a stem-and-leaf diagram for net change during January 2002. b. Construct a histogram for net change. c....

The two requirements crucial to achieving audit efficiency and effectiveness with a personal computer are selecting Client data that can be accessed by the auditor s personal computer and audit...

What are the key elements of a good plan

3. Several years ago, 8,000 Amtrak workers agreed not to disrupt service by walking out, at least not until a court hearing was held. Amtrak had asked the courts for a temporary restraining order,...

6. What actions might make employers lose elections?

3. This case and this chapter both had something to say about how organizational culture influences ethical behavior. What role do you think culture played at Enron? Give five specific examples of...