Thursday, January 9, 2014

 

Crystallization – the Hidden Dimension of Hedge Funds’ Fee Structure

By Gert Elaut, Ghent University, Belgium; Michael Frömmel, Ghent University, Belgium; and John Sjödin, Ghent University, Belgium, and RPM Risk & Portfolio Management AB, Sweden

In their paper, the authors investigate the implications of variations in the frequency with which hedge funds update their high-water mark on fees paid by hedge fund investors. Their research examines the statistical and economical effects of the crystallization frequency on total fee load.

Download the full article here.

From the January 2014 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.

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