BlueCrest Capital Management said on Dec. 1 it would return external investors' funds and turn itself into a private investment partnership. The group managed $8 billion of external funds.

This calculator shows how the owners of a hypothetical hedge fund could make more money running just their own money - with higher levels of risk - than a larger pool that includes mostly outside investors' money. The calculator assumes that the owner invests an equal amount of their own capital in both scenarios.

The key inputs are assets under management in the two different cases - the traditional roughly ""2-and-20"" mangement and performance fee model and the ""zero and 100"" private management model - as well as the expected annual returns on investment and the amount of leverage employed.

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