Hurdle Rates . .

Discussion in 'Professional Trading' started by uncleTom, Nov 10, 2006.

  1. Alright for the longest time I thought the straight rate for HFs was 2/20. Two percent upfront, and twenty after every penny earned.

    Recently I was reading up on this a little more and the hurdle rate was mentioned. I understand that it's a point, let's 5% of AUM, after that point is broken, the manger gets their 20%.

    If I'm right, my question is what is the common rate? Specifically for guys that do the 2/20 thing? Do I need to gain five percent? more? ten percent?