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> asset managers are paid for getting more assets under management, not their fund's profits. I've always wondered why they aren't paid a percentage of profits
by mysterypie 10y ago
> asset managers are paid for getting more assets under management, not their fund's profits.
I've always wondered why they aren't paid a percentage of profits? That would align their interests with the customers'.
- janpieterz 10y agoOr even a percentage that increases by the percentage of profit.
- OscarCunningham 10y agoThey're generally paid both. They often charge "two and twenty" meaning 2% yearly of the assets under management and 20% of the profit. (Of course they don't absorb 20% of the losses in a bad year)
- smallnamespace 10y agoThat's only hedge funds, which are a small fraction of total fund capitalization.
- OscarCunningham 10y agoWhat are the percentages of the market occupied by different fund types? Where would I go to look that up?
- smallnamespace 10y agohttp://www.hedgefundfacts.org/hedge/wp-content/uploads/2009/09/Hedge_Funds.pdf http://www.hedgefundfacts.org/hedge/wp-content/uploads/2009/... Page 4 "Hedge funds as a percent of total: 1.1%"