Worked Example
An example might be as follows: An investor subscribes for shares worth $1,000,000 in a hedge fund. Over the next year the NAV of the fund increases by 10%, making the investor's shares worth $1,100,000. Of the $100,000 increase, 20% (i.e. $20,000) will be paid to the investment manager, thereby reducing the NAV of the fund by that amount and leaving the investor with shares worth $1,080,000, giving a return of 8% before deduction of any other fees.
Read more about this topic: Performance Fee
Famous quotes containing the word worked:
“I think it’s unfair for people to try to make successful blacks feel guilty for not feeling guilty.... We’re unique in that we’re not supposed to enjoy the things we’ve worked so hard for.”
—Patricia Grayson, African American administrator. As quoted in Time magazine, p. 59 (March 13, 1989)
“... often in the heat of noonday, leaning on a hoe, looking across valleys at the mountains, so blue, so close, my only conscious thought was, “How can I ever get away from here? How can I get to where they have books, where I can be educated?” I worked hard, always waiting for something to happen to change things. There came a time when I knew I must make them happen; that no one would do anything about it for me. And I did.”
—Belinda Jelliffe (1892–1979)