4 ms·
The fund in the article is clearly not using 2 and 20. I don't have a big issue with 2 and 20. It is the prerogative of both parties in the contract to come up
by msane 12y ago
The fund in the article is clearly not using 2 and 20.
I don't have a big issue with 2 and 20. It is the prerogative of both parties in the contract to come up with a more reasonable number for mega-funds.
The issue with this fund is graft and corruption.
- no_wave 12y agoIf this fund were using 2 and 20 that 2 billion number would be higher - in fact, it would be 15 times higher (160 billion * .02 points * 10 years), and that's not including the 20% fee on gains. 2 and 20 is a sucker's deal. Stay out of hedge funds if possible.
- limeyx 12y agoDont they have to give back the two when they take the 20 though ?