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Hedge Fund
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HF Fundamentals and Strategy Types
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Hedge Fund Strategies
In a classic “2 and 20” hedge fund structure, what does the “20” represent?
A
A 20% management fee on assets under management
B
A 20% performance fee on profits (per fund terms)
C
A 20% fee on gross exposure (longs + shorts)
D
A 20% fee on capital flows (subscriptions/redemptions)
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