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it's not clear why Fidelity would want a cap on the upside, since it needs to beat an index. Most likely, it doesn't think it's giving up any upside.
by vasilipupkin 11y ago
it's not clear why Fidelity would want a cap on the upside, since it needs to beat an index. Most likely, it doesn't think it's giving up any upside.
- jonknee 11y agoI would imagine ceding the cap makes it easier to get the 2x liquidation preference.
- caseyf7 11y agoThey give up the upside because they have protection from the downside (they get their money back first).
- vasilipupkin 11y agoI understand, I'm saying I don't think they believe they are giving up much upside at all
- lmm 11y agoNo-one wants a cap on their upside, whether or not they need to beat an index.