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.A hedge fund with $1 billion of assets charges a management fee of 2% and an...
A hedge fund charges an incentive fee of 15% of any investment returns above the T-bill...
A hedge fund charges an incentive fee of 15% of any investment returns above the T-bill rate, which currently is 3.0% but is subject to a high water mark. In the first year, the fund suffers a loss of 7.2%. What rate of return must it earn in the second year to be eligible for an incentive fee? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
For example, imagine a hedge fund managing $200 million with a 2% management fee and a...
For example, imagine a hedge fund managing $200 million with a 2% management fee and a 20% performance fee benchmarked to the S&P 500 total return. If the fund earns a 12% return in a year when then S&P 500 total return was 7%, what is the after-fee return for investors? How much does the fund make in fees (dollar amount)?
For example, imagine a hedge fund managing $200 million with a 2% management fee and a 20% performance fee benchmarked t...
For example, imagine a hedge fund managing $200 million with a 2% management fee and a 20% performance fee benchmarked to the S&P 500 total return. If the fund earns a 6.5% return in a year when then S&P 500 total return was 7%, what is the after-fee return for investors? How much does the fund make in fees (dollar amount)?
You invested $1,200,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the...
You invested $1,200,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the fund has a high-water-mark provision. Suppose the first year the fund manager loses 8 percent, and the second year she gains 16 percent. Assume management fees are paid at the beginning of each year and performance fees are taken at the end of each year. What are the management and performance fees paid each year? (Leave no cells blank - be certain to...
You invested $1,300,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the...
You invested $1,300,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the fund has a high-water-mark provision. Suppose the first year the fund manager loses 5 percent and the second year she gains 17 percent. Assume management fees are paid at the beginning of each year and performance fees are taken at the end of each year. What are the management and performance fees paid each year? (Leave no cells blank - be certain to enter...
A sector fund specializing in commercial bank stocks had average daily assets of $5 billion during...
A sector fund specializing in commercial bank stocks had average daily assets of $5 billion during the year. Suppose the annual operating expense ratio for the mutual fund is 0.90 percent, and the management fee is 0.60 percent. How much money did the fund’s management earn during the year? If the fund doesn’t charge any 12b-1 fees, how much were miscellaneous and administrative expenses during the year? (Do not round intermediate calculations. Enter your answer in dollars not in millions,...
A sector fund specializing in commercial bank stocks had average daily assets of $3.8 billion during the year. Suppose...
A sector fund specializing in commercial bank stocks had average daily assets of $3.8 billion during the year. Suppose the annual operating expense ratio for the mutual fund is 0.85 percent, and the management fee is 0.45 percent. How much money did the fund's management earn during the year? If the fund doesn't charge any 12b-1 fees, how much were miscellaneous and administrative expenses during the year? (Do not round intermediate calculations. Enter your answer in dollars not in millions,...
Question 6 1 pts The Corona Fund is a typical hedge fund which charges its Limited...
Question 6 1 pts The Corona Fund is a typical hedge fund which charges its Limited Partners (LPs) a 2% management fee and a 20% performance fee. After 1 year in operation, Corona Fund terminates and distributes $122MM to its LPs. Assuming the fund started with $100mm on day one, how much of a performance fee (in dollars) is the fund manager entitled to receive? $2mm $6mm $8mm Nothing Question 7 1 pts The collateral pool used to back bonds...
1. In private equity investing, the amount of investors' funds provided is known as: A. Committed...
1. In private equity investing, the amount of investors' funds provided is known as: A. Committed capital. B. Designated capital. C. Drawn down capital. 2. The potential benefits of commodity investing is: A. Low price volatility, which results in high Sharpe ratios. B. Higher returns on commodities compared to global equities and bonds. C. Providing portfolio diversification due to low correlation of commodities returns with global equities and bonds. 3. Which of the following is LEAST LIKELY to be a...
John Galt is a mutual fund manager at Atlas Asset Management. He can generate capital. After...
John Galt is a mutual fund manager at Atlas Asset Management. He can generate capital. After that amount his skills are spread too thin,, so he cannot add value and his alpha is zero for all investments over $500 million. Atlas Asset Management charges a fee of 0.80% on the total amount of money under management. Assume that there are always investors looking for positive alpha investments and no investor would invest in a fund with a negative alpha. Assume...
A sector fund specializing in commercial bank stocks had average daily assets of $3.8 billion during the year. Suppose the annual operating expense ratio for the mutual fund is 0.85 percent, and the management fee is 0.45 percent. How much money did the fund's management earn during the year? If the fund doesn't charge any 12b-1 fees, how much were miscellaneous and administrative expenses during the year? (Do not round intermediate calculations. Enter your answer in dollars not in millions,...
Question 6 1 pts The Corona Fund is a typical hedge fund which charges its Limited Partners (LPs) a 2% management fee and a 20% performance fee. After 1 year in operation, Corona Fund terminates and distributes $122MM to its LPs. Assuming the fund started with $100mm on day one, how much of a performance fee (in dollars) is the fund manager entitled to receive? $2mm $6mm $8mm Nothing Question 7 1 pts The collateral pool used to back bonds...
John Galt is a mutual fund manager at Atlas Asset Management. He can generate capital. After that amount his skills are spread too thin,, so he cannot add value and his alpha is zero for all investments over $500 million. Atlas Asset Management charges a fee of 0.80% on the total amount of money under management. Assume that there are always investors looking for positive alpha investments and no investor would invest in a fund with a negative alpha. Assume...
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