Regulatory AUM vs Normal AUM
If you search up different hedge funds on WhaleWisdom, aum13f.com, docoh.com, and the official EDGAR 13F database, you sometimes get different values for the fund's AUM.
The difference lies in the fact that some sites show Regulatory AUM, while others report normal AUM. And the discrepancy can be substantial. I read somewhere, for example, that Balyasny has $127bn regulatory AUM but only $6bn normal AUM. (https://www.reuters.com/article/us-health-coronav…) (https://aum13f.com/guide/regulatory-aum-vs-aum-me…)
A google search shows that regulatory AUM is "calculated based on the advisor’s gross assets under management (including securities purchased with borrowed amounts), not the net value of the accounts."
But what I couldn't find is, which AUM does a fund use to charge management and performance fees?
I'm assuming it must be regulatory AUM, because if a fund like Balyasny only charges fees on their 6bn AUM, their 699 employees must be starving.
Lol it’s the actual AUM not regulatory. And nobody at Balyasny is starving
So the fees are charged on actual AUM and not regulatory AUM?
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Thanks for your input. And the performance fee is calculated out of gross returns right?
If I identify a fund and want to determine its revenue, should I use its regulatory AUM or normal AUM to calculate the fees?
Also, not quite following your math here
Where'd you get 2.16bn from? Assuming 8B aum, 30% gains, and a fee structure of 2 and 20, the math looks like this:
2% * 8bn = 160m
30% * 8bn = 2.4bn, of which they charge a 20% performance fee. So 2.4 * 20% = 480m.
Total = 540m.
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Based on my understanding: Regulatory AUM is the levered exposure of the fund. What you refer to as the "normal AUM" is the total invested assets.
Here’s something I’ve always wondered. If a firm has regulatory AUM of $500M. Most of those small HFs likely run 100/50 or 120/60 exposures. Then is it a fair assumption that RegAUM * 50-66% is a good approximation for actual AUM?
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