CFA Practice Question

There are 139 practice questions for this study session.

CFA Practice Question

The management fee charged by hedge funds generally range from 1 to 3% of:
A. invested capital.
B. committed capital.
C. net assets.
Explanation: On the other hand, a private equity fund charges its management fees based on committed capital.

User Contributed Comments 1

User Comment
jejelola invested capital is the total fund contributed by investors, committed capital is the total funds investors are willing to leave unwithdrawn in the hedge fund and net asset is the value of the total assets hedge managers invests in using the invested capital.

a hedge fund manager will calculate his returns based on the invested capital, usually between 1% and 3%. this is termed management fee
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