Kitty Cat Partners

 

Question 1. For all types of alternative investments (hedge funds, private equity, real estate, commodities and infrastructure), discuss its 1) correlation of returns with traditional investments; 2) liquidity; and 3) benefits and risk for investors. Tables are preferred. If not, use of bullet points are strongly recommended.

Question 2. Kitty Cat Partners, a fund of hedge funds, has the following fee structure:
o 2/20 underlying fund fees with incentive fees calculated independently
o Kitty Cat fees are calculated net of all underlying fund fees
o 1% management fee (based on year- end market value)
o 10% incentive fee calculated net of management fee
o The fund and all underlying funds have no hurdle rate or high- water mark fee conditions
In the latest year, Kitty Cat’s fund value increased from $100 million to $133 million before deduction of management and incentive fees of the fund or underlying funds. Based on the information provided, what is the total fee earned by all funds in the aggregate?

Question 3. ARK Queen is a hedge fund with $250 million of initial capital. ARK charges a 2% management fee based on assets under management at year end, and a 20% incentive fee based on returns in excess of an 8% hurdle rate. In its first year, ARK appreciates 16%. Assume management fees are calculated using end-of-period valuation. What is investor’s net return assuming the performance fee is calculated net of the management fee?

 

 

 

 

Sample Solution

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Topographically, Ruritania is generally situated between domains that would have been called Saxony and Bohemia in Hope’s time. It has become a conventional term, both concrete and theoretical, for a nonexistent pre WW1 European realm utilized as the setting for sentiment, interest and the plots of experience books. Its name has been given to an entire type of composing, the Ruritanian sentiment, and it has spread outside writing to a wide range of other areas.4

This paper will examine Petru�elkov�’s (P) (1994 (1940))5 Czech form of the short-novel-length Biggles Goes To War (BGW; Biggles Let� na Jih (BLJ) in Czech), set in Maltovia, portrayed in plot as a little Ruritanian-type 6 nation with a German-type upper-

class found “somewhat toward the north-east of the Black Sea, depicted by its diplomat to London as “� ..just barely in Europe. � . Asia � . isn’t a long way from our eastern frontier”.7 Its classification echoes Hope’s somewhat, e.g., Max/Ludwig Stanhauser, von Nerthold, Janovica, Bethstein, Menkhoff, Vilmsky, Klein, Nieper, Gustav, and so on. Maltovia is undermined by its neighbor Lovitzna, a marginally bigger nation, additionally Ruritanian to the extent can be judged, depicted by the Maltovian diplomat as: “� another state, not huge, as nations in Europe go, yet bigger than we are.” Johns gives minimal enough genuine data on Maltovia, and even less on Lovitzna, in spite of the fact that the names he cites for the last nation, e.g., Zarovitch (the name of the decision administration), Hotel Stadplatz, Shavros, Stretta Barovsky, do extend a Ruritanian picture like that of Maltovia. Lovitzna is building up an aviation based armed forces with the help of European educators, and the story starts with the Maltovian diplomat in London asking Biggles, Algy, and Ginger to create one for Maltovia to counter the danger from Lovitzna.

BGW incorporates scenes, for example, e.g., Biggles telling a German pilot that local people “dislike us, you know, they are volatile (93; No. 17 underneath)”, which may have evoked unwelcome pictures and meanings among Czech perusers, particularly during the period when BGW and BLJ were first published.8 The arrangement picked by P to deal with such circumstances has been to go one little above and beyond than interpretation, and to transpose the story, moving Maltovia to some unclear spot in
Whittlesey 2012 sets up an exhaustive continuum for any exchange of any substance starting with one medium then onto the next,

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