Element Capital to Raise Fees to 40%

Element Capital to Raise Fees to 40%

Assessment

Interactive Video

Business

University

Hard

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The video discusses the trend of hedge funds reducing fees post-financial crisis, with most funds charging around 1% management and 15% performance fees. However, some funds like Element, which have shown exceptional performance, continue to charge higher fees. The video highlights that investors are willing to pay these fees if the performance justifies it. It also mentions other funds like those managed by Greg Coffey and Allen Howard, which charge high performance fees. The video concludes by discussing the importance of fund size and infrastructure in attracting large investments from entities like pension funds.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has been the general trend in hedge fund fees since the financial crisis?

Fees have increased significantly.

Fees have become unpredictable.

Fees have remained stable.

Fees have decreased.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is Element able to charge high fees despite the industry trend?

It has a large number of investors.

It has consistently delivered strong performance.

It has a unique investment strategy.

It is a new fund in the market.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is unique about Element's fee structure compared to other hedge funds?

It combines high performance and management fees.

It has a lower performance fee.

It charges no management fee.

It offers discounts to large investors.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which other hedge fund manager charges a high performance fee similar to Element?

Ray Dalio

Warren Buffett

Greg Coffey

George Soros

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why do large pension funds find Element attractive despite its high fees?

Element provides tax benefits.

Element can handle large investments comfortably.

Element offers guaranteed returns.

Element has a small fund size.