The fee structure of hedge funds is usually like this: most fund companies draw 2% management fee and 20% commission equivalent to investment income. For example, if a $65.438+billion fund gets a return of 30%, his fund manager will get a return of $78.8 million (65.438+billion x2%+(65.438+billion-65.438+billion X2%)X30%X20%). And if you don't pay this $654.38+billion, his fund manager can still get a management fee of $20 million.

Some bullish funds are even more expensive. For example, james simons will mercilessly extract 5% management fee and 44% commission. This almost means that as long as you have the strength to start a hedge fund, you will almost certainly make a profit. But it's not easy. In 2006, Robert Merton, the Nobel laureate in economics, tried to start a hedge fund company by himself, but he had to give up because he could not raise enough funds.

However, to earn such a high management fee and commission, you need a beautiful return on investment. Rich people who inject capital into hedge funds are very willing to "gamble" on high returns, but once the fund manager's "performance" is not ideal, they will immediately withdraw their funds without hesitation. Hedge funds charge such a high management fee to their customers, and it is conceivable that customers are picky and harsh. They have no loyalty, and their judgment on fund managers is only based on your recent performance.

This is the information I learned from other articles. * * * Study together for reference only.