List & describe elements to consider when appointing a Hedge Fund? Davidson Kempner Capital Management is a hedge fund with a value of 656 775 485 at the beginning of the year (an all-time high). Davidson Kempner Capital Management Funds charges a 3% management fee based on assets under management at the beginning of the year and an 18% incentive fee with a 10% hard hurdle rate and uses a high water mark. Incentive fees are calculated on gains net of management fees. The ending values before fees are: Year 1: 692 424 623 Year 2: 710 868 115 Year 3: 842 858 265 Year 4: 867 480 999 Calculate the total fees and investors net return for all three years and in the fourth year after the Investor has negotiated both the Management fees and Incentive fees to 2% and 16% respectively due to the poor performance of Davidson Kempner Capital Management. What would you recommend to the Investor concerning the Asset Management Agreement between the 2 parties? Show all your calculations. Total Marks of Q3 : 25