Long/Short Equity Hurdle Rates

hey guys, had a quick question: for long/short equity hedge funds, are the hurdle rates used to calculate incentive fees (the 20% in the typical "2/20" structure) 0% (since funds claim to produce "absolute returns")? Or is there a typical industry-benchmark of say 6%. Thanks!

Anonymous Monkey, Upload Your Resume - Land a Job

Members that upload a resume get 2.3x the number of interview invites through the Talent Oasis. Learn more.

Comments (1)

Nov 24, 2014

1-Click to Unlock All Comments - 100% FREE

Why do I need to be signed in?
WSO is a knowledge-sharing community that depends on everyone being able to pitch in when they know something.
+ Bonus: 6 Free Financial Modeling Lessons with 1-Click Signup ($199 value)