@Sushila. If investments are pooled in a Hedge fund, does redemption of one client in a downturn, affect the returns of others or are the funds independently managed like a PMS. Also what is your personal opinion on the fee structure affecting the clients returns as stated by Mr. Buffet and Munger. Do you have any argument why Hedge funds could be better than a low cost index? I am confused whether to start a Hedge fund or a public holding company like Berkshire Hathaway. The latter many not charge a fee but still needs to sell the shares for operational expenses, which anyway counts as a fee and also other factors like sell offs at downturns, exposure to short sellers, hostile takeovers and constant scrutiny of public companies doesn't make it so much attractive to me.
Normally gp will have less investment in private equity or hedge fund , lp should have more investment . If the fund manager or gp is new to industry then they can invest some big amount to get hope of the investors to make investments . Gp will invest 5 to 10 % of overall AUM in the fund , that is also not mandatory . If gp feels he can invest otherwise he can get all the investment from lp itself
Okay, I've not come across any case where the GP contributes more than the LP's in case of Rental Real Estate and Operating Partnership - Renewable Energy and Oil & Gas Industries. So I checked if it's case specific in case of Investment Partnerships.
@@sushilahariharan Partnership makes a profit of $120mn, doesn't the GP get his share of Management Fees? What about Incentive Management Fees? If it's net income, then it can be in the ratio of PIP.
Thank you for investing your time and energy into creating such an informative and engaging video.🙃
So nice of you
Investor allocations are for hedge funds structured as partnerships
@Sushila. If investments are pooled in a Hedge fund, does redemption of one client in a downturn, affect the returns of others or are the funds independently managed like a PMS.
Also what is your personal opinion on the fee structure affecting the clients returns as stated by Mr. Buffet and Munger. Do you have any argument why Hedge funds could be better than a low cost index?
I am confused whether to start a Hedge fund or a public holding company like Berkshire Hathaway. The latter many not charge a fee but still needs to sell the shares for operational expenses, which anyway counts as a fee and also other factors like sell offs at downturns, exposure to short sellers, hostile takeovers and constant scrutiny of public companies doesn't make it so much attractive to me.
Thanks for the knowledge.....would like to learn more on this. Plz share the link if u have made more videos on this topic 👍
Thank you for your support and wishes 🤗
Thanks for these kinda of videos helping to gaining knowledge, could you pls upload a video how to calculate Hedge fund Nav
Great suggestion Devesh. Will do!
Nice and Informative video Sushila... Can you make a video on Subsequent Close with numerical examples and also on Partner transfer....?
Thank u for your suggestion ☺️ will do that
thankss
Thank you for such knowledgeable video.
Can you also come up with a video based on Equalization Credit.
Thank you .
That's. A great suggestion. Will do . Thanks
Normally gp will have less investment in private equity or hedge fund , lp should have more investment .
If the fund manager or gp is new to industry then they can invest some big amount to get hope of the investors to make investments .
Gp will invest 5 to 10 % of overall AUM in the fund , that is also not mandatory . If gp feels he can invest otherwise he can get all the investment from lp itself
Yes that's right. Thank you
So investor's proportionate allocation is the same as their profit allocation if I understand, right?
That's right sir!!
I want to know if GP contributes more than the Investor Limited Partners. Is this the case of Investment partnerships??
Great question
It depends from fund to fund
Okay, I've not come across any case where the GP contributes more than the LP's in case of Rental Real Estate and Operating Partnership - Renewable Energy and Oil & Gas Industries. So I checked if it's case specific in case of Investment Partnerships.
LP1 gets 2 cr
LP2 gets 3 cr
LP3 gets 2 cr
GP gets 5 cr
Total 120 Cr
That’s absolutely perfect 👍
@sushilahariharan looks like proportionate percentage is not totalling to 100
@sushilahariharan also could you confirm if it is 20/100*120000000 which is 2400000 pls confirm if I'm right
@@sushilahariharan
Partnership makes a profit of $120mn, doesn't the GP get his share of Management Fees?
What about Incentive Management Fees?
If it's net income, then it can be in the ratio of PIP.