A performance fee is a fee that an investment fund may be charged by the investment manager that manages its assets, calculated by reference to the increase in the fund's net asset value (or "NAV"), which represents the value of the fund's investments. Performance fees are widely used by the investment managers of hedge funds, which typically charge a performance fee of 20% of the increase in the NAV of the fund.
Read more about Performance Fee: Worked Example, High Water Marks, Hurdles, Other Fees, Terminology, See Also
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“What avails it that you are a Christian, if you are not purer than the heathen, if you deny yourself no more, if you are not more religious? I know of many systems of religion esteemed heathenish whose precepts fill the reader with shame, and provoke him to new endeavors, though it be to the performance of rites merely.”
—Henry David Thoreau (1817–1862)
“As a general rule never take your whole fee in advance, nor any more than a small retainer. When fully paid beforehand, you are more than a common mortal if you can feel the same interest in the case, as if something was still in prospect for you, as well as for your client.”
—Abraham Lincoln (1809–1865)