For example, if such a fund started out with a value of $100b and made 120% in one year (and was paid a 5% base fee plus a 30% performance fee) and then -25% return the next (and was 'only' paid a typical minimum 5% base fee), the investors would end up with a return of around $34b over two years, while the fund managers would have been paid $40b in fees...
The $30 million pounds paid to Crispin Odey, a British hedge fund manager who made similar bets in 2009, seems a more reasonable payment for exceptional hedge fund management.
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