Free Capital is a hedge fund with $200m of initial capital and charges a management fee of 1.5% based on the assets under management at year end. There is also an incentive fee of 15% in place based on returns in excess of a 5% hurdle rate. In the first year the fund appreciates by 12%. Assuming the management fees are calculated using endofperiod valuation and the performance fee is calculated net of management fee, what is the investor's net return?