Mention the term “two and twenty” and some may think it’s a variation on the number of blackbirds baked in a pie. 

But in this excellent article by John Cassidy appearing in the July 2, 2007 New Yorker, Cassidy describes the various fee schedules involved with hedge funds and explains how some funds work (and how they have performed over time). He also references Veryan Allen’s, Hedge Fund blog.