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Arcanine Partners is a hedge fund based in Milan which currently manages $1.5 billion of capital. The fund charges a management fee of 1% of
Arcanine Partners is a hedge fund based in Milan which currently manages $1.5 billion of capital. The fund charges a management fee of 1% of NAV at the beginning of the year, and a 25% performance fee. In its first year, AP returned 18%. The fund also has a hurdle rate of 5%.
What is AP total net return if the incentive fee is computed based on the return net of management fees?
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