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The fund in the article is clearly not using 2 and 20.

I don't have a big issue with 2 and 20. It is the prerogative of both parties in the contract to come up with a more reasonable number for mega-funds.

The issue with this fund is graft and corruption.

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If this fund were using 2 and 20 that 2 billion number would be higher - in fact, it would be 15 times higher (160 billion * .02 points * 10 years), and that's not including the 20% fee on gains.

2 and 20 is a sucker's deal. Stay out of hedge funds if possible.

Dont they have to give back the two when they take the 20 though ?

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