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In fact, the top-performing funds now charge 2.5% and 30%.
by GCA10 12y ago
In fact, the top-performing funds now charge 2.5% and 30%.
- michaelochurch 12y agoLet me guess: "top-performing" means "comparable to an index fund".
- tptacek 12y agoYour comment was intended as snark, but in fact asset allocation is more complicated than analyzing year over year returns and comparing them to a benchmark. Investors might put money into an asset class that performs near an index fund, and pay more to do it, simply to have some funds allocated into an asset that isn't correlated with the index. Or the volatility characteristics of the asset classes might be important.
- selmnoo 12y agoA small remark: thank you for not replying to what you deem to be "snark" with just more snark, but rather instead replying with something that can be replied to with a substantive comment rather than a continual exchange of ad hominems or something.
- PhantomGremlin 12y agoHa. That would have been chump change for Stevie Cohen at SAC Capital. He charged 3% and 50%.[1] Alas for Stevie, a few Debbie Downers at the US Attorney's Office (Southern District of NY) decided that some of Stevie's trades were too well timed for there not to be insider trading. That resulted in criminal convictions and jail time for some of Stevie's portfolio managers (but Stevie was never personally charged with insider trading, he was only charged with "failing to supervise"). So now poor Stevie no longer manages other people's money. Instead his firm only manages the $10 billion or so that is his own money. [1] http://www.forbes.com/sites/nathanvardi/2013/07/24/the-government-is-moving-to-destory-legendary-hedge-fund-firm-sac-capital/ http://www.forbes.com/sites/nathanvardi/2013/07/24/the-gover...