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. . . B) ABC Hedge Fund has $500M in assets under management at the start of period 1. The fund grows to $575 million at
Posted: Mon Jan 17, 2022 8:07 am
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- B Abc Hedge Fund Has 500m In Assets Under Management At The Start Of Period 1 The Fund Grows To 575 Million At 1 (54.41 KiB) Viewed 57 times
. . . B) ABC Hedge Fund has $500M in assets under management at the start of period 1. The fund grows to $575 million at the end of period 1. • At the end of period 2, the fund's value falls to $550 million. • At the end of period 3, the fund's value rises to $560 million. • Period 4 final valuation for the fund's assets is $590M. Assume management fees are calculated using end-of-period valuation. Calculate the return to investors at the end of each period given a “2 and 20” fee structure with both a high-water mark provision and a hurdle rate of 3% imposed together for incentive fees. [11 marks)