Many observers appear to agree that we are coming to the top of what has been a powerful bull market cycle which has been interjected but not held back by several exogenous events. These events have served to curtail the cycle on a short term basis only but not turn it into the worst of all things equity; a sluggish bear market.

Performance fees have typically been associated with hedge funds/alternative investment funds. The traditional hedge fund 2% management fee (on AUM) and 20% performance fees (above a fixed hurdle rate or previous rate of return) date back to the early days of these funds, when many pursued high volatility strategies, often previously employed on banks’ balance sheets rather than managing external investor capital.