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:
“These last worked only one hour, and you have made them equal to us who have borne the burden of the day and the scorching heat.”
—Bible: New Testament, Matthew 20:12.
“...we never worked for white people in their homes. No, sir, not even once! That is one of the accomplishments in my life of which I am the most proud, yes, sir!”
—Annie Elizabeth Delany (b. 1891)