Elliott Management is one of largest hedge fund firms in the United States. Elliot now holds $275 billion in its hedge fund account. Elliott charges a 1% management fee based on assets under management at year end, and a 15% incentive fee based on returns in excess of an 8.25% hurdle rate. In its first year, Elliott appreciates 19.75%. 

Calculate the investor's net return. Assume that management fees are calculated using end-of-period valuation, and the performance fee is calculated net of the management fee.