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Hedge Fund Manager CompensationHedge Fund managers are typically paid using the '2 and 20' formula for compensation. This is the arrangement where the manager receives an annual fee of 2% of the fund's assets along with 20% of the fund's profit for the year. While the 2 and 20 percentages may vary between funds, the payment structure of management fee plus a percentage of the fund's profit is almost always used. In 2005 the total number of existing hedge funds was over 9,000 and the funds collectively managed over $1 trillion in assets. See also: Introduction to Hedge Fund Investing Credit Suisse/Tremont Hedge Fund Index This index is a popular barometer of overall hedge fund market performance. HedgeFundResearch.com Tracks the number of existing hedge funds and the total amount of money under their management. |
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