I remember seeing this scheme for manager’s fee which “prevents the company from losing good managers during market downturns”. What is this? - sticky
Possibly a % of the overall companies profit? Or giving them a % Equity in the company???
bigwilly Wrote: ------------------------------------------------------- > Possibly a % of the overall companies profit? Or > giving them a % Equity in the company??? Don’t remember. Probably a % of AUM? So that the managers are still receiving som $ during downturn. - sticky
ad valorem fees instead of % of portfolio gains?
Ad Valorem fees is teh same as AUM fees/mgmt fees. The mgmt fees would go towards paying salaries, bills, etc and does not go straight into the manager’s pocket. That is why I stated a % of overall firm profit b/c you can still be profitable firm wide but on not on your assets.