Average performance and management fees of hedge funds worldwide 2023
As of 2023, the weighted average of performance fees was considerably higher than that of management fees. This is typical for traditional hedge funds, as it is very common to employ a two- and 20-fee structure. Management fees are traditionally two percent of the fund's net asset value, while the performance fee is 20 percent of the fund's profits. While some hedge funds, such as the long-biased hedge fund have divested from this rule the performance fee of roughly 10.5 percent is still higher than the management fee of 0.86 percent.