In practice, what's the difference between LO HF and AM?

From my understanding, the major differences are 1. The HF business structure consists of an offshore "holding" company, and an onshore management company that charges fees to the company offshore. They do this for tax purposes, and the investors are considered limited partners. 2. The fee structure, hedge fund management fees are usually higher than traditional AM fees and HFs charge a performance fee which is usually 15-20% of profits not including a high water-mark or hurdle rate. 3. HF's are not subject to the stricter regulations that traditional AM firms are subject to so they can make use of riskier instruments like derivatives.

If I got something wrong I apologize and feel free to correct me.

The lines are blurry, but a LO hedge fund typically:

a) charges a performance fee (usually 10-15% of total profit or 20% above S&P 500, or a fixed benchmark)

b) has a far more concentrated portfolio than a typical long-only fund

Thanks guys, SB'd you all