oh, really now! hedge funds huh! and you said a small hedge fund?

how small is the NAV, say 20M?

remember that hedge funds earned only from the NAV of the fund, the management fee, of which the normal going rate is 2% p.a.

so let's compute:

20M x 2% = 400K

so this is the only income of the Fund, ofcourse, other than the performance fee, which is solely base on the increase in NAV, of which part of the bonus.

as you were saying that his 400k per annum is just his basic, you may think twice in saying that his salary is 400k p.a., is he running the hedge fund on his own? nothing else to pay? just his salary???

and a 7 year experience guy running a hedge funds??? who the hell will invest into such??? oh well, you said it, i dont think il believe it.

and yeah, CEO term is not common for hedge funds, they are called Directors, and the highest ranking guy is the managing director. and another thing, hedge funds Director discusses their YEARS of experience in their PPM, I dont think a 7 year guy is capable to be placed as a managing Director, if this is the case, i dont think their NAV will even be more than a million dollar, for i dont think qualified investors will trust their money with an inexperienced director.

review your facts again, i might believe you in your second try.