Question.

An investor would like to ensure that a hedge fund manager does not receive an annual incentive fee unless the fund's net asset value (NAV) at the end of the year exceeds the NAV at the beginning of the year. What term best describes this incentive structure provision?

a. Hurdle rate

b. High watermark

c. Profit-sharing fee

d. Absolute return provision

Answer rating: 100% (QA)

Answer the answer of the question is Option a Hurdle rate Explanation A hurdle ra... View the full answer