Questionconsider a hedge fund whose annual fee structure

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Reference no: EM13381988

Question:

Consider a hedge fund whose annual fee structure has a fixed fee and an incentive fee with a high watermark provision. The fund manager earns an incentive fee only if the fund is above the high watermark of the maximum portfolio value since the inception of the fund.

Required:

Assess the positive and negative implications of the high watermark provision for the investors of the hedge fund.

- Require only 200 words for this section

- 5 points

- Need to be based on Harvard referencing style and each point had to be from different sources.

- If applicable had to include relative examples for the point stated.

Reference no: EM13381988

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