kaal:claim:1428387-007

The hedge fund fee structure creates very strong financial incentives for managers to hide weak performance through valuation.

Source quote, verbatim

The fee structure of hedge funds creates very strong financial incentives to hide weak performance by way of valuation. Hedge

From

Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009), II.B Fee Structure, p. 7
https://ssrn.com/abstract=1428387 · source PDF

Cite as

Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387

Holds when

where fees run up to 30 percent of profits and one to three percent of assets under management
where high water marks apply

Classification

mechanismsupport: arguedrisk-and-incentivesdisclosure

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