4 ms·
It's tough because of how little material is out there. I will say, I thought their hypothesis on why the fees are so high was very astute. Can't know if it's
by mgfist 2y ago
It's tough because of how little material is out there.
I will say, I thought their hypothesis on why the fees are so high was very astute. Can't know if it's true or not, but it feels very compelling.
- bcherny 2y agoThe wealth transfer hypothesis I didn’t really get, but their other hypothesis that it’s a way to nudge non-employees out of the fund is probably right.
- mgfist 2y agoI think "wealth transfer" is a poor description. Really it's just a way to ensure they have enough money to compensate (very highly) less tenured employees, and to align incentives better (i.e. not just being paid because you're already rich and tenured).
- bcherny 2y agoYes, I agree. That's a less loaded way of explaining it.