October 13, 2008
The hedge fund performance fee (also known as the “performance allocation,” the “incentive allocation,” the “incentive fee,” among other aliases), is a periodic fee which is calculated as a percentage of any gains of a hedge fund over a predetermined period of time.
The fee normally taken on both realized and unrealized gains of the hedge [...]
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September 7, 2008
Question: What is the hedge fund high water mark?
Answer: The hedge fund highwatermark is a mechanism that is implemented to make sure that managers do not take a performance fee when the fund has had negative performance over previous performance fee periods. The high watermark is the colloquial term for the mechanical application of [...]
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Revising the Hedge Fund Compensation Structure
April 13, 2009Syndicated Post on Hedge Fund Fees
I have recently come across a very good blog called Ten Seconds Into the Future by Bryan Goh of First Avenue Partners, a hedge fund seeder. Bryan’s posts are very insightful and I recommend all managers take a look at his writings. The post below discusses some possible ways which [...]