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Hedge funds’ 2 and 20 fee structure is facing challenges, former Bridgewater exec says
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fnlondon.comAs hedge funds battle plunging equity markets, rising inflation, and large outflows, they are set to face another challenge next year — their so-called 2 and 20 fee structure.
The structure — charging a 2% management fee on total assets under management alongside a 20% performance fee on profits generated — has been used for decades across the industry.
But...
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