A framework established by the European Union to regulate hedge funds and private equity firms, ensuring that they operate under supervision to mitigate systemic risk and protect investors.
Alternative investments refer to financial assets that fall outside the traditional categories of stocks, bonds, and cash. These can include tangible assets like art and real estate, as well as financial instruments like hedge funds and private equity.
Two and Twenty is a typical formula for compensation of hedge fund managers, where 2% of total asset value is charged as a management fee, and an additional 20% of profits is taken as a performance fee.
