All else the same, investors should prefer a hedge fund with a 2 plus 20 structure to a fund with a 1.5 plus 15 structure.

Name: All else the same, investors should prefer a hedge fund with a 2 plus 20 structure to a fund with a 1.5 plus 15 structure.
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Question

Quizplus · Accepted Answer

Investors generally prefer lower fees, so a 1.5 plus 15 structure, which indicates lower management and performance fees, would typically be more attractive than a 2 plus 20 structure.

All Else the Same, Investors Should Prefer a Hedge Fund