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> Keep in mind that the 2% is there to cover the expenses of the firm and its trading costs. The 20% is the real incentive for the fund managers. True to a deg
by oarsinsync 11y ago
> Keep in mind that the 2% is there to cover the expenses of the firm and its trading costs. The 20% is the real incentive for the fund managers.
True to a degree, unless your AUM is growing substantially faster than your costs, at which point your fees are covering more than that already.
- whatok 11y agoAnd what almost always follows in that case is that performance starts to lag because most strategies do not scale with how well your fundraising ability happens to be.