How is “Carried Interest” Relevant to Hedge Fund Managers? Apr4

Posted by & filed under Hedge Fund Performance, Tax.

We’ve heard a lot of buzz for years now about the “carried interest loophole” that hedge fund managers take advantage of.  Critics of this loophole have suggested that it allows such managers to earn big profits from securities trading without paying taxes.  While there is some truth in the notion that carried interest represents a tax deferral for managers of certain types of investment funds, this is not the case for many managers of true “hedge” funds

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