>The rule of thumb is that hedge funds charge a 2% per year management fee and keep 20% of all profits,
>All returns shown are net of fees
So, subtract 20% from the 3 positive numbers, and that's about 6% in fees (this may be off by a bit, I'm quickly approximating the math in my head). Subtract another ~8% for 4 years of fees, and that's about 14% combined fees. 26% - 14% = 12%. Seems to be about right.
The author could have made the way he calculated the fees more clear, but his point stands that a huge % of hedge fund profits go to fees.
>All returns shown are net of fees
So, subtract 20% from the 3 positive numbers, and that's about 6% in fees (this may be off by a bit, I'm quickly approximating the math in my head). Subtract another ~8% for 4 years of fees, and that's about 14% combined fees. 26% - 14% = 12%. Seems to be about right.
The author could have made the way he calculated the fees more clear, but his point stands that a huge % of hedge fund profits go to fees.