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Such returns would not be possible if they grew to a certain size. By closing the fund, they can keep it small enough to limit scaling issues.
by tcbawo 7y ago
Such returns would not be possible if they grew to a certain size. By closing the fund, they can keep it small enough to limit scaling issues.
- imtringued 7y agoThat's illogical because people don't get paid in ROI. They get paid in absolute dollars. Earning a 30% ROI on 200 billion dollars is better than earning a 30% ROI on 100 billion dollars.
- tcbawo 7y agoMy point is that once a fund grows to a certain size, ROI at that scale becomes impossible. I wouldn't be surprised to learn that some of their funds have investment restrictions and mandatory distributions.
- ivalm 7y agoBut they do have other funds. It's simply they want to keep their money in higher return fund and other people's money in the bigger, lower return fund.