Tag Archives: performance fee


Hedge Fund Due Diligence

Hedge funds are limited to a specific group of sophisticated investors mainly because they are thought to have more experience with markets and investing. However, hedge funds aren’t without risk. While you can’t control market conditions, you can control who you choose to handle your money. Weeding out the bad apples can be one of the most important aspects in [...]

What is a Hurdle Rate?

A hurdle rate is the minimum return necessary for a fund manager to start collecting incentive fees. The hurdle is usually tied to a benchmark rate such as Libor (London Interbank Offered Rate) or the one-year Treasury bill rate plus a spread. Hedge funds which specify a soft hurdle rate charge a performance fee based on the entire annualized return. [...]