2 & 20 Hedge Fund Fee Structure Explained

Today we are looking at the theory of Two and Twenty (2/20) – a typical annual fee arrangement that hedge funds use. Two means 2% of the AUM or assets under management, and Twenty means the 20% performance fee on any profits generated over and above a set hurdle rate.

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[Tom-jtrv]

I've seen people talk about 2/20 for a while and I knew a little bit about it, but not enough to know about hurdles existence. I learn a lot from your videos Kieron. Great video, thanks!

[andreast]

You need to subtract the flat fee before you calculate the performance fee. Otherwise you’re double charging.

[donjohnson]

Thank you for the wealth of information you are sharing with us...could you tell us how mortgage notes are exchanged in the stock market through security exchange commission..what all the forms that lenders must file to validate the security...tell us how to find the paper trail.. the activity history of the lender with the note