Large hedge funds like Citadel charge what they call a performance fee but it functions essentially as a second management fee, with total annual compensation (management + performance fee) reaching several billion dollars per fund annually, which is profitable for the fund operators but ethically problematic.
factualpending
Speaker
DavidEvidence Quote
“they call it a performance D, but you know they're it's almost like not that diversified. It's basically just almost like another management fee... they're collecting a few billion dollars a year each one of those shops”
Source
This Ex-Poker Pro Built a Hedge Fund by Betting Against Beta – David Orr on Asymmetric Bets— Odds on OpenCreated: 8/12/2026, 6:42:53 PM
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