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A hedge fund manager charges a management fee of 2.3% each year & an incentive fee of 13% on net new profits earned by its
A hedge fund manager charges a management fee of 2.3% each year & an incentive fee of 13% on net new profits earned by its fund after deducting the management fee. All fees are collected @ the end of the year.The gross returns for the past three years are +22% for year 1, -8% for year 2, and +7% for year 3. What's the total net return to investors for the fund over the 3 year period? How much total fees did the manager collect for the 3 years as % of the initial investment?
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