What did you get for hedge fund performance fee question? Cost was more based on Ad volerum, base + perf fee, or both were equal? In the essay part, what was the “repricing” component in r = (Div / P) + inflation + growth – change in S + change in P/E I thought this was change in P/E but I did not identify the numerical value. In the essay part, who had more risk tolerance ability and willingness between pension plan and endowment? I think I chose endowment for ability and pension plan for willingness
Anyone think it was weirded out by the phrase “NOMINAL HISTORICAL COMPONENTS” of the Grinold Kroner model? Does that mean we weren’t supposed to use the projected values that were in the lower half of that table? i feel like it was a trick. same as you for pension/endowment.
I got both equal. Some people say we did not have to calculate cange in P/E. They just asked the components so we had to mention those components only. Not sure though.
sanfrangirl Wrote: ------------------------------------------------------- > What did you get for hedge fund performance fee > question? > Cost was more based on Ad volerum, base + perf > fee, or both were equal? > > > In the essay part, what was the “repricing” > component in r = (Div / P) + inflation + growth – > change in S + change in P/E > I thought this was change in P/E but I did not > identify the numerical value. > > In the essay part, who had more risk tolerance > ability and willingness between pension plan and > endowment? > I think I chose endowment for ability and pension > plan for willingness I got the same fee both ways for the hedge fund question.
i got equal
I recall the the fees were different given the expected return on the base investment. Otherwise, I must have forget to READ the FULL question. I think for me the base/perf was more for me. ( I can’t remember now)
sh34 Wrote: ------------------------------------------------------- > I recall the the fees were different given the > expected return on the base investment. > > Otherwise, I must have forget to READ the FULL > question. > I think for me the base/perf was more for me. ( I > can’t remember now) I got this too if you added the return to the calculation, performance was lower. However someone said Ad valorem takes the t0 balance. So I’m marking it as a -1 for now
My result was the fees came out equal. Which I certainly was not expecting the answer to be. I wish I could recall the details, but the numbers came out to nice even figures did they not? Maybe like 30grand or something? Or 60 Grand? Was the one a base fee and the performance based on like 20% of returns? And the Other was a Graduated fee schedule? And say for the first 1MM they charged one fee and then the next 1MM they charged another, and then the final block had another fee? Since I can not recall the total portfolio value I was using 1MM as just guesses.
Both fees would have been equal
equal
i got equal as well…it seemed like a trick but i just went with it
I got ad val was more. Don’t know why you would use t0 balance to calc performance fee
I got equal. $910k
CFAIsSoGreat Wrote: ------------------------------------------------------- > I got ad val was more. > Don’t know why you would use t0 balance to calc > performance fee you wouldn’t, just the ad val. - i got the same answer as you