The following information applies to Old Blues Advisors, a hedge fund: $288 million in assets under management (AUM) as of prior year-end 2% management fee (based on year-end AUM) 20% incentive fee calculated: net of management fee using a 5% soft hurdle rate using a high-water mark (high-water mark is $357 million) Current year fund return is 25% What is the total fee earned by Old Blues Advisorsin the current year?
The following information applies to Old Blues Advisors, a hedge fund: $288 million in assets under management (AUM) as of prior year-end 2% management fee (based on year-end AUM) 20% incentive fee calculated: net of management fee using a 5% soft hurdle rate using a high-water mark (high-water mark is $357 million) Current year fund return is 25% What is the total fee earned by Old Blues Advisorsin the current year?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The following information applies to Old Blues Advisors, a hedge fund:
- $288 million in assets under management (AUM) as of prior year-end
- 2% management fee (based on year-end AUM)
- 20% incentive fee calculated:
- net of management fee
- using a 5% soft hurdle rate
- using a high-water mark (high-water mark is $357 million)
- Current year fund return is 25%
What is the total fee earned by Old Blues Advisorsin the current year?
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