You invested 1400000 with a market-neutral hedge fund


You invested $1,400,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the fund has a high-water-mark provision. Suppose the first year the fund manager loses 6 percent, and the second year she gains 16 percent. Assume management fees are paid at the beginning of each year and performance fees are taken at the end of each year. What are the management and performance fees paid each year? (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

                         Year 1 Year 2

Management fees $ $

Performance fees $ $

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Portfolio Management: You invested 1400000 with a market-neutral hedge fund
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