How do Hedge Fund Managers make their money? I know about the 2/20 rule (and think it's a bit much). I understand the 2% is taken up front no matter what and then the rest is invested.
My question is how do Hedge Fund Managers make their money on that "20?" If they make a good deal of money for their clients their clients aren't going to say "here's that 20% I owe you." So how do Hedge Fund Managers make money?
Do they sell shares of client stock so they can cash out that 20%? Also, is this 20% performance fee executed quarterly?
Sorry for the novice question... This is something that has been plaguing me... I MUST know how Hedge Fund Managers make money... How they make cash when all their client's money is tied up in stocks and bonds, etc.
Thanks,
---Scott
Submitted December 24, 2017 at 10:51PM by skagee http://ift.tt/2BztFYF
