Citi Business Advisory Services recently issued the results of its 2014-15 Annual Hedge Fund Operating Metrics Survey (formerly called The Hedge Fund Business Expense Survey), which focused on hedge fund management fee revenues, operating expenses, operating margins, performance fee income and overall profitability. In this article, the second of two, we summarize Citi’s findings on the growing importance of management fees for hedge fund managers and how a manager’s product mix may affect both its profitability and its valuation. The first article covered Citi’s methodology, survey demographics and findings with regard to hedge fund profitability in both 2013 and 2014. For coverage of Citi’s 2013 survey, see “Citi Prime Finance Survey Reveals Levels and Mix of Expenses Incurred by Hedge Fund Managers of Different Sizes, Firm Profitability and Margins, Use of Chargebacks and Impact of Regulations on Expenses,” Hedge Fund Law Report, Vol. 7, No. 1 (Jan. 9, 2014).