How Are Hedge Fund Expenses Different from Mutual Fund Expenses

question 62

Essay

How are hedge fund expenses different from mutual fund expenses? What are hurdle rates and high water marks at a hedge fund? Why are these used?

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Definitions:

Negative Feedback Mechanism

A process where the output of a system dampens or reduces the processes leading to the output, maintaining system stability.

Parathyroid Glands

Small endocrine glands in the neck that produce parathyroid hormone, which regulates calcium levels in the blood and bone.

Pineal Gland

A small endocrine gland in the brain that produces the hormone melatonin, involved in regulating sleep-wake cycles.

Melatonin

A hormone secreted by the pineal gland that plays a role in setting circadian rhythms.