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 had a wonderful job. I worked for a big model agency in Manhattan.... When I got on the subway to go to work, it was like traveling into another world. Oh, the shops were beautiful, we had Bergdorf’s, Bendel’s, Bonwit’s, DePinna. The women wore hats and gloves. Another world. At home, it was cooking, cleaning, taking care of the kids, going to PTA, Girl Scouts. But when I got into the office, everything was different, I was different.”
—Estelle Shuster (b. c. 1923)
“... the next war will be a war in which people not armies will suffer, and our boasted, hard-earned civilization will do us no good. Cannot the women rise to this great opportunity and work now, and not have the double horror, if another war comes, of losing their loved ones, and knowing that they lifted no finger when they might have worked hard?”
—Eleanor Roosevelt (1884–1962)