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DEF Hedge Fund had $500 million in assets at the beginning of Year 1. The fund charges a 20% incentive fee, subject to a high-water
DEF Hedge Fund had $500 million in assets at the beginning of Year 1. The fund charges a 20% incentive fee, subject to a high-water mark of $500 million. The fund returned -10% at the end of Year 1, and 20% at the end of year 2. What incentive fee, if any, did the fund manager earn at the end of Year 2?
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To calculate the incentive fee earned by the fund manager at the end of Year 2 we need to consider t...
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Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
14th Edition
1260247821, 978-1260247824
