Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 2002 erstellt
Description:
Hedge funds are collective investment vehicles fast becoming popular with high net worth individuals as well as institutional investors. Given an incentive structure that involves fees based on performance, this paper proposes a structure and quot;equalizationquot; process that is both equitable and transparent to investors. The structure involves the use of multi-portfolios giving any fund a structure similar to that of a partnership organization. The quot;equalizationquot; process is demonstrated using stylized examples that illustrate the equalization procedures and computations. We believe that the approach improves on current methods and meets the objectives of equity and transparency, thus improving the incentive compatibility between the fund manager and investors