PT - JOURNAL ARTICLE AU - David K.C. Lee AU - Steven Lwi AU - Kok Fai Phoon TI - An Equitable Structure for Hedge Fund Incentive Fees AID - 10.3905/joi.2004.434549 DP - 2004 Aug 31 TA - The Journal of Investing PG - 31--43 VI - 13 IP - 3 4099 - https://pm-research.com/content/13/3/31.short 4100 - https://pm-research.com/content/13/3/31.full AB - 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.