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NEW YORK — Institutional Investor’s Alpha reported Wednesday that the top 50 hedge-fund managers earned a combined $29 billion in 2007. Five managers earned more than $1 billion.
For years, funds typically charged 2 percent of the amount invested plus 20 percent of the profits. Ezra Zask of Lakeville Capital Management said some of the bigger hedge funds now charge as much as 5 percent of the principal and 40 percent of the profits. Some investors are willing to pay higher fees if the funds have consistently beaten the market.
