Hello everyone,
I am new to trading and I was doing some brief reading tonight about hedge funds (Carl Icahn in particular). My question is, how exactly does the compensation work? Does the management fee cover all of the business expenses such as lease space, Internet, computers, analyst salaries, etc? Then the percentage of profits fee, such as 20%, all of that goes directly to the head fund manager? Or does the 20% become broken up into smaller chunks for several managers?
Thanks
I am new to trading and I was doing some brief reading tonight about hedge funds (Carl Icahn in particular). My question is, how exactly does the compensation work? Does the management fee cover all of the business expenses such as lease space, Internet, computers, analyst salaries, etc? Then the percentage of profits fee, such as 20%, all of that goes directly to the head fund manager? Or does the 20% become broken up into smaller chunks for several managers?
Thanks
