Certified Investment Management Analyst (CIMA)

A CIMA professional is evaluating a hedge fund with a 2-and-20 fee structure. What does '2-and-20' refer to?

2% management fee and 20% performance fee 2% performance fee and 20% management fee 2% front-end load and 20% redemption fee 2-year lock-up and 20-day notice period

Correct Answer:

2% management fee and 20% performance fee

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