Understanding Hedge Fund Fees: Implications for Hedge Fund Managers
FULCRUM FEES
How we get paid
We get paid in two ways. The first is the basic fee,
which is, like it sounds, pretty basic. It's calculated
and paid each month at an annual rate of 0.95% of
the average daily assets for the month.
The second element of how we get paid is through
a performance adjustment called a fulcrum fee.
Fulcrum fees are unusual in the mutual fund
industry. Most funds charge the same fees
whether they perform well or not. We didn't think
that was quite right. So we adopted a fee structure
that pays us more when the funds outperform their
respective benchmarks and less when they fall
short of those benchmarks. This ensures that our
management team's goals are aligned with yours
by providing an incentive for the team to
consistently achieve benchmark-beating returns --
not just to pump up the funds' assets.
ST!
klgates.com
43
43
K&L GATES
EAView entire presentation