Objective, Fees and Performance

4 important questions on Objective, Fees and Performance

Objective hedge fund

Hedge fund always make money in any environment always, absolute return benchmark, thus not a benchmark

Management fees mutal funds and hedge fund

Mutual funds charge a management fee usually 1,5%
Hedge funds charge 2%  management fee, and additionally they get 20% performance fee.

High water mark

Only charge performance fee if the fund is above its previous high of particular investors investment period.
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Performance of active investors

Active investors as represented by mutual funds has no skill: Jensen and Fama.

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