Hello,
I have one rather elementary question. I was going through the reports of one Hedge Fund (i.e. Vltava Fund SICAV hxxp://www.vltavafund.com/assets/dopis_2013_en.pdf) that presents its performance in NAV (Net Asset Value). How do withdrawals or deposits impact NAV? If for example NAV is 20% p.a. is the profit applied to clients the same (=20%) or can it be different?
To be more specific on my thoughts: Let’s say NAV = £10.000, the new client comes in and deposits another £2.000. From my very laic understanding NAV should increase by 20% although Hedge Fund did not realize any profit. So profit for clients would equal to 0.
So in this case although Hedge fund reports 20% increase in the NAV it was not generated by the profit but rather from additional deposit coming in.
Do I understand this correctly? Could anyone pls explain me what is the real performance of the fund?
Many thanks
