What is the performance fees for the second year

Assignment Help Financial Management

Reference no: EM131936725

You invested $1,350,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the fund has a high-water-mark provision.

Suppose the first year the fund manager loses 6 percent, and the second year she gains 22 percent. Assume management fees are paid at the beginning of each year and performance fees are taken at the end of each year.

What are the management and performance fees paid each year? (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

The managment fees for year one and two are 27,000 and 24872.40 respectivly and the performance fee for year 1 is 0.

What is the performance fees for the 2nd year?

Reference no: EM131936725

Questions Cloud

What is the forward exchange rate for given days : Assume the current US dollar-yen spot rate is 90yen/$1. The current nominal interest 180 day rate of return in Japan is 1% and 2% in the US.

Calculate the expected return and standard deviation : As an investment analyst, you have just been provided information on the results of two companies' shares which are Company X and Company Y.

Specialist dermatology and cosmetic surgery chain : A specialist dermatology and cosmetic surgery chain is considering opening a clinic in Germany that requires an investment of $250,000 today

Implementing mutually exclusive access to a critical section : Implementing mutually exclusive access to a critical section using binary semaphore. Implementing mutual exclusion using monitor called by processes competing.

What is the performance fees for the second year : You invested $1,350,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the fund has a high-water-mark provision.

Should you leave your financial plan as it is : Assume that you have established a plan to achieve a particular level of wealth in three years, but the economic conditions suddenly cause your existing income.

Portfolio weights and portfolio return : What are the portfolio weights of each stock? what is your portfolio return?

Which security bond should you buy : You can invest in taxable bonds that are paying a yield of 9.1 percent or a municipal bond paying a yield of 7.35 percent.

Distinguish between spin locks and suspend locks : Distinguish between spin locks and suspend locks for sole access to a critical section. Implement generalized Dekker protocol using Test & Set atomic operation.

User Account

All Pages