In the summer of 2008, AQR Capital Management was contemplating the launching of a new hedge fund strategy. The planned DELTA portfolio would offer investors exposure to a basket of nine imperative hedge fund strategies. The DELTA strategy would be innovative in two ways.
Only second, in relation to its fees, the new DELTA strategy would allege investors comparatively lesser fees: 1% management fees plus 10% of operation above a cash hurdle (or, instead, a management fee of 2% only). This fee structure was relative to the industry, where 2% management fees plus 20% of operation, generally with no hurdle, was conventional.
PUBLICATION DATE: October 27, 2011 PRODUCT #: 212038-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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