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:
“It doesn’t seem so much to climb a mountain
You’ve worked around the foot of all your life.”
—Robert Frost (1874–1963)
“...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)