Hedge funds typically have a “2 and 20” fee structure; the 2% is counted as a management fee, which is paid up front to cover the costs of operating the fund; the 20% is a performance fee that the Fund Manager takes as their cut on any profit the fund makes.  It is this 20% fee that Towers Watson, an influential pensions consultant, is challenging hedge funds to review in light of increasing from investors worldwide.

Take a look at the full article on Forbes by following this link…


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