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Perhaps I am daft. In your example, I can't figure out where the 200k is coming from. I read 100MM in assets, therefore 2MM in fees to manage. 10MM in profits,
by delinka 15y ago
Perhaps I am daft. In your example, I can't figure out where the 200k is coming from.
I read 100MM in assets, therefore 2MM in fees to manage. 10MM in profits, 2MM to the managers' pockets (which is 20% of these profits). Total to the managers: 4MM, or 40% of the profits.
- solutionyogi 15y agoYou are right. It was my mistake, I fixed it. That's what I get when I try to write a comment while trying to juggle some code on the side. And now that I think about it more, if you consider that hedge fund can lose the money (and still charging 2% management fee), there could be a situation where the managers get the lion's share of profits. Even then, 379 billion dollars in fees seems really high.