Hedge Fund Performance Fee Definition

Below please find a definition of “Hedge Fund Performance Fee”

Financial Analysis Training & Glossary TermsHedge Fund Performance Fee: The charge — typically 20% — that a fund manager assesses on gains earned during a given 12-month period. For example, if a fund posts a return that is 40% above its hurdle rate, the incentive fee would be 8% (20% of 40%) — provided that the high-water mark does not come into play.

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