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Not coincidentally, the managers can charge fees only on the capital they're managing, i.e., the capital they haven't returned.
by cs702 2y ago
Not coincidentally, the managers can charge fees only on the capital they're managing, i.e., the capital they haven't returned.
- darth_avocado 2y agoThe point of investments is that they grow. If the managers grew the money well, they'd still have plenty of capital under management after returning some back to the investors.
- kjs3 2y agoSerious question: why would I do that? I mean, sure, at some point. But there's no regulation/oversight telling me I have to give you any back. In fact, my T&Cs probably say specifically I don't. If I give you 1%, that's 1% less that I have to play with. And it seems that in this market, if you don't like it, there's a line of folks behind you willing to write a check. Private capital is where you park your phuck-you money, so everyone involved seems reasonably ok with the status quo.
- qeternity 2y ago> In fact, my T&Cs probably say specifically I don't. What basis of experience do you have to say “probably”? Where do people get this overconfidence. This is absolutely not true and is well defined in most subscriptions, especially post 2008.
- kjs3 2y agoWhat basis The ones I've read. Where do people get this overconfidence. Probably the same place you got it.
- qeternity 2y agoIf you had read them, you wouldn’t call them “T&Cs” because there are specific names for these documents like PPM which are standard nomenclature. But ok.
- kjs3 2y agoOh, man...that's got to be the most classic Comic Book Guy dismissal I've seen in a while. "You said Khan was stranded on Ceti Alpha 4, when OBVIOUSLY they were stranded on Ceti Alpha 5. Everything you say is invalid!". Bet you're a real joy at parties.
- qeternity 2y agoI mean, that was just the giveaway...your entire premise was wrong too.