Investing
What is a hedge fund 2 and 20 fee?
Quick Answer
A "2 and 20" hedge fund charges 2% annual management fee plus 20% performance fee on profits above a benchmark or high-water mark. On a $1M investment with 10% gross returns, you net ~$60K after the manager takes ~$40K in fees.
Warren Team
Updated April 26, 2026
36
Warren Team
Updated April 26, 2026
36
Important Disclaimer:
The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.
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