Economy
Why hedge funds charge “two and twenty”
HERE’S THE INTERESTING PART
Wall Street has a magical grift called the 'Two and Twenty' fee structure. Hedge funds charge investors a 2% flat fee on total assets just for managing the money, plus a 20% cut of any profits they make. This means even if a hedge fund manager completely tanks your portfolio and loses millions, they still walk away incredibly wealthy just for having held your cash.
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