@anbrin No, its abt 2% management fee, 20-40% typical performance fee. Performance fee is only taken if the management can exceed certain performance benchmarks that are set at the hedge fund. These benchmarks could be anything over 0% return, or it could be something like anything over 7% annual return. Typically, the benchmark is around 5-10% annual return. So, if the fund loses money, there is no performance fee accessed.
Hi, you seem like you know something around the topic. With regards to the actual positions held by the hedge fund. At the time of the acceptance of a decrease or increase request in shares/interest/ownership etc, does the hedge fund manager automatically liquidate all of his positions/trades. If not, i.e. the liquidation is done by the manager after a decrease request is made, does he decrease each position equally (according to ratio of the position size vs total capital invested in the fund - is this regulated etc?), or can he liquidate positions as he sees fit.
Interesting. So the next person, who wants to redeem his share, the amount he gets will be based on what`s left...so if everybody want to redeem their lets say 10%, last person` 10% will be lower first person` 10% ?
Te has equivocado en alguna cuenta..y creo que es en el 10% que retira de su parte de su 30% como capital inicial que pyso emp pete...entonces seria el 10% de 17.1M no del total. Las cuentas creo q deben de ser claras para los dos lados...quuza me equivoque...pero las cuentas que presentas debes de revisarlas..gracias
So what happens if it is just paper profit? Do u get performance fees for that? Or do you actually have to sell and lock in the gains. Because how would value investing funds do it when they hold shares for years.
You have lockout periods and redemption terms. But in the end, the fund grew and everyone had profited based off their percentage of initial investment and growth rate.
Now I can monetarily rule the world.
This was so well explained. Thank you for your knowledge.
How do you write on the screen like that? What software are you using?
@anbrin
No, its abt 2% management fee, 20-40% typical performance fee. Performance fee is only taken if the management can exceed certain performance benchmarks that are set at the hedge fund. These benchmarks could be anything over 0% return, or it could be something like anything over 7% annual return. Typically, the benchmark is around 5-10% annual return.
So, if the fund loses money, there is no performance fee accessed.
Hi, you seem like you know something around the topic. With regards to the actual positions held by the hedge fund. At the time of the acceptance of a decrease or increase request in shares/interest/ownership etc, does the hedge fund manager automatically liquidate all of his positions/trades. If not, i.e. the liquidation is done by the manager after a decrease request is made, does he decrease each position equally (according to ratio of the position size vs total capital invested in the fund - is this regulated etc?), or can he liquidate positions as he sees fit.
Afzal Husein pointing that core of Hedge Fund is 2/20 management fee. And this "old" video perfecting my understanding about hedge fund. Thank you!!!
hi what digital set up that you used for such great whiteboard and writing? thanks.
Vlad works for Khan Academy?
Can you make a video on the Master & Feeder fund and how it is related?
Interesting. So the next person, who wants to redeem his share, the amount he gets will be based on what`s left...so if everybody want to redeem their lets say 10%, last person` 10% will be lower first person` 10% ?
hello dear khan academy how you add subtitles please make one video on it
I thought the management 2% fee was paid up front. Is this true? Or is it trailing?
Any time I believe
good explanation. thank u
Excellent video
How do you get into this kind of work
How is the initial fund pool calculated for AUM and management fee?
Is the passing the Series 7 exam required before you can launch a hedge fund?
I tip my hat to you sir....
@elantra11 No, they would get their original amount + profits. The percentages are just illustrative. They would actually be dollar figures.
Thnx!
Is Pete’s Capital a stand alone fund ?
using this example what happens to the 10% moving forward? I mean if you add up all the pieces it no longer adds up to 100%. Please help clarify.
Te has equivocado en alguna cuenta..y creo que es en el 10% que retira de su parte de su 30% como capital inicial que pyso emp pete...entonces seria el 10% de 17.1M no del total. Las cuentas creo q deben de ser claras para los dos lados...quuza me equivoque...pero las cuentas que presentas debes de revisarlas..gracias
With that much money in the loanable funds market there wouldnt be any high interest accounts left on the earth.
So what happens if it is just paper profit? Do u get performance fees for that? Or do you actually have to sell and lock in the gains. Because how would value investing funds do it when they hold shares for years.
Lucid chart might be better than neyon drawing here.
@gotohellpunk Key is to know where you are, where you really want to be, and then figure out your method to get there.
Management fee and performance fee .............
Earns... Mgmt fee= avg nav over thr year.. Gets 2% fee
Although this is informative, this is not unique to hedge Funds. All PE and VC Funds have similar agreements!
Real Hedge Funds Managers don't chose that type of accounting.
confusing!
The guy that can't do a simple subtraction is trying to educate others about hedge funds.Just brilliant...
Mohammad Rahanjamian subtracting is always difficult
If everybody redeems their shares doesn't that bring the fund to it's knees
You have lockout periods and redemption terms. But in the end, the fund grew and everyone had profited based off their percentage of initial investment and growth rate.
Private....
still don't get it... im drunk and its 5:30 Am..... oh and I took some Molly too... that might be it...
I started out trading last year and i must say it got better when i let Mr Reed Cooper manage my trading
what a coincidence i am investing with this exact person too
Am so impressed with the signals am getting from Reed Cooper
reeddcooper(@)gmail.com
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I have seen a lot traders talk about this man i hear his strategy is safe and profitable
terrible explanation
Hello, how do we get 110 million 🥲