A friend of mine is looking at starting an investment fund. Wants to form as an SMA b/c formation costs are much cheaper than an actual hedge fund. But it looks like an SMA can’t charge an incentive/performance fee because they’re not specifically catering to accredited investors. Can anyone confirm or deny this?
ManMythLegend Wrote: ------------------------------------------------------- > A friend of mine is looking at starting an > investment fund. Wants to form as an SMA b/c > formation costs are much cheaper than an actual > hedge fund. But it looks like an SMA can’t charge > an incentive/performance fee because they’re not > specifically catering to accredited investors. > > Can anyone confirm or deny this? I have yet to see an SMA that charges a performance fee, only wrap fee. We have access to over a thousand strategies. Hedge funds on the other hand do charge both… YMMV…