TY - JOUR T1 - An Equitable Structure for Hedge Fund Incentive Fees JF - The Journal of Investing SP - 31 LP - 43 DO - 10.3905/joi.2004.434549 VL - 13 IS - 3 AU - David K.C. Lee AU - Steven Lwi AU - Kok Fai Phoon Y1 - 2004/08/31 UR - https://pm-research.com/content/13/3/31.abstract N2 - There are a variety of problems in fee structures between hedge fund managers and their clients. Examples here illustrate issues such as the free rider problem and the “claw-back” syndrome that can arise in fee contracts. A different “equalization” process that is both equitable and transparent to investors would involve multiportfolios that give any fund a structure similar to that of a partnership organization, and overcomes the current drawbacks in contracts. Application of this structure should improve fund manager and investor compatibility. ER -