Hedge fund structure and fees | Finance & Capital Markets

Hedge fund structure and fees | Finance & Capital Markets | Khan Academy

Рет қаралды 342,654

13 жыл бұрын

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Understanding how hedge funds are structured and how the managers get paid. Created by Sal Khan.
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Finance and capital markets on Khan Academy: Hedge funds have absolutely nothing to do with shrubbery. Their name comes from the fact that early hedge funds (and some current ones) tried to "hedge" their exposure to the market (so they could, in theory, do well in an "up" or "down" market as long as they were good at picking the good companies). Today, hedge funds represent a huge class investment funds. They are far less regulated than, say, mutual funds. In exchange for this, they aren't allowed to market or take investments from "unsophisticated" investors. Some use their flexibility to mitigate risk, other use it to amplify it.
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Пікірлер: 56

@wealthychristine Жыл бұрын

This was so well explained. Thank you for your knowledge.

@synyewyong8079 5 жыл бұрын

hi what digital set up that you used for such great whiteboard and writing? thanks.

@aarondavey8953 7 жыл бұрын

Can you make a video on the Master & Feeder fund and how it is related?

@srirangaswamy8986 5 жыл бұрын

good explanation. thank u

@jackfaggie9477 8 жыл бұрын

Now I can monetarily rule the world.

@valanes 11 жыл бұрын

How do you write on the screen like that? What software are you using?

@davidcharleslloyd2271 5 жыл бұрын

Excellent video

@rere439 3 жыл бұрын

Afzal Husein pointing that core of Hedge Fund is 2/20 management fee. And this "old" video perfecting my understanding about hedge fund. Thank you!!!

@cjtrades 2 жыл бұрын

How is the initial fund pool calculated for AUM and management fee?

@gsvkck 13 жыл бұрын

using this example what happens to the 10% moving forward? I mean if you add up all the pieces it no longer adds up to 100%. Please help clarify.

@hlang08 2 жыл бұрын

Is the passing the Series 7 exam required before you can launch a hedge fund?

@kautukkoli2712 Жыл бұрын

hello dear khan academy how you add subtitles please make one video on it

@gotohellpunk 12 жыл бұрын

How do you get into this kind of work

@cesaribanez8389 5 жыл бұрын

Te has equivocado en alguna cuenta..y creo que es en el 10% que retira de su parte de su 30% como capital inicial que pyso emp pete...entonces seria el 10% de 17.1M no del total. Las cuentas creo q deben de ser claras para los dos lados...quuza me equivoque...pero las cuentas que presentas debes de revisarlas..gracias

@shibrik 5 жыл бұрын

Is Pete’s Capital a stand alone fund ?

@n00bSLicer 13 жыл бұрын

@elantra11 No, they would get their original amount + profits. The percentages are just illustrative. They would actually be dollar figures.

@enigma1026 3 жыл бұрын

Vlad works for Khan Academy?

@wallstreet710 4 жыл бұрын

I tip my hat to you sir....

@Fatties09 12 жыл бұрын

@gotohellpunk Key is to know where you are, where you really want to be, and then figure out your method to get there.

@ColtraneDavis 11 жыл бұрын

Thnx!

@tannershackelford27 5 жыл бұрын

Lucid chart might be better than neyon drawing here.

@QuickstepIe1 10 жыл бұрын

If you want to learn about performance fees, visit quickstep.ie

@Gump-tion 9 жыл бұрын

I thought the management 2% fee was paid up front. Is this true? Or is it trailing?

@conductingintomfoolery9163 3 жыл бұрын

Any time I believe

@davishiet 11 жыл бұрын

So what happens if it is just paper profit? Do u get performance fees for that? Or do you actually have to sell and lock in the gains. Because how would value investing funds do it when they hold shares for years.

@cobdole9409 12 жыл бұрын

With that much money in the loanable funds market there wouldnt be any high interest accounts left on the earth.

@IJustMadeAComment 12 жыл бұрын

@anbrin No, its abt 2% management fee, 20-40% typical performance fee. Performance fee is only taken if the management can exceed certain performance benchmarks that are set at the hedge fund. These benchmarks could be anything over 0% return, or it could be something like anything over 7% annual return. Typically, the benchmark is around 5-10% annual return. So, if the fund loses money, there is no performance fee accessed.

@MDK83 5 жыл бұрын

Hi, you seem like you know something around the topic. With regards to the actual positions held by the hedge fund. At the time of the acceptance of a decrease or increase request in shares/interest/ownership etc, does the hedge fund manager automatically liquidate all of his positions/trades. If not, i.e. the liquidation is done by the manager after a decrease request is made, does he decrease each position equally (according to ratio of the position size vs total capital invested in the fund - is this regulated etc?), or can he liquidate positions as he sees fit.

@elantra11 13 жыл бұрын

Interesting. So the next person, who wants to redeem his share, the amount he gets will be based on what`s left...so if everybody want to redeem their lets say 10%, last person` 10% will be lower first person` 10% ?

@varunshahvo-tv9854 4 жыл бұрын

Earns... Mgmt fee= avg nav over thr year.. Gets 2% fee

@jackiechan3509 2 жыл бұрын

Management fee and performance fee .............

@illillicitica1256 Жыл бұрын

Although this is informative, this is not unique to hedge Funds. All PE and VC Funds have similar agreements!

@xforestberryx 12 жыл бұрын

confusing!

@talentekhuzwayo2705 3 жыл бұрын

If everybody redeems their shares doesn't that bring the fund to it's knees

@cjtrades 2 жыл бұрын

You have lockout periods and redemption terms. But in the end, the fund grew and everyone had profited based off their percentage of initial investment and growth rate.