A Career in Hedge Funds and the Price of Overcrowding
نویسنده
چکیده
These managers also enjoy remarkably favorable tax treatment. For example, even though “carried interest” — mainly their 20 percent commission on portfolio gains — has the look and feel of ordinary income, it is taxed at the 15 percent capital gains rate rather than the 35 percent top rate for ordinary income. That provision alone saved Mr. Simons several hundred million dollars in taxes last year.
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