"...Safkhet requires investors to place at least $3 million in the fund. “I really want investors who understand what we're creating. And we're completely unhedged, short only. So it's a small investor base; you really have to understand the kind of volatility that will come with it,” she explains. The fee structure is also complicated. To collect performance fees, Safkhet has to have both positive alpha (i.e., do better than the market) and positive absolute returns (i.e., above zero). The incentive fees are calculated on a sliding scale, and there is a management fee of 1.5 percent."
Gee, that's going to end well.
