Hedge Fund Litigation | Hedge Fund Performance | Hedge Fund Fraud

Hedge Fund Performance

Hedge fund managers are compensated on a contingency-based fee structure, which generally is a one or two percent management fee plus an incentive fee (around 20 percent) of annual profits.
Hedge funds have exploded over the last ten years. According to the FBI website, “hedge funds have quadrupled in number (from approximately 2,100 in 1996 to approximately 8,800 in 2006), and have over $1.3 trillion under management.”
Hedge funds account for 20 to 50 percent of the daily trading volume on the New York Stock Exchange.
At least 83 U.S. hedge funds shut down in 2006 amounting to $35 billion in assets.
Investors are required to have $1 million in net worth or an annual income of $200,000.
An SEC proposal would also require at least $2.5 million in investments, excluding personal residences.
More than 100 hedge fund fraud cases have been brought by the Securities and Exchange Commission since 2001.