What is hedge funds? What is valuation? How to calculate management fee?

Question

Accepted Answer

Hedge funds are alternative investment vehicles that use various strategies to generate high returns. Valuation is the process of determining the worth of an asset. Management fee is a fee charged by hedge fund managers for managing the fund.

Hedge funds are not regulated by the SEC and are only available to accredited investors.
Valuation can be done using various methods such as discounted cash flow, market multiples, and precedent transactions.
Management fee is typically calculated as a percentage of assets under management, usually ranging from 1-2%.
For example, if a hedge fund has $100 million in assets under management and charges a 2% management fee, the fee would be $2 million per year.

Accepted Answer

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Accepted Answer

A hedge fund is a limited partnership of private investors whose money is managed by professional fund managers who use a wide range of strategies, including leveraging or trading of non-traditional assets. In finance, valuation is the process of determining the present value

What is hedge funds? What is valuation? How to calculate management fee?

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