Incentive fee OTHER than high-water mark?

  • Thread starter Thread starter Peblo
  • Start date Start date
HWM might be an incentive for high performance but is also an incentive for high risk.
A very effective incentive for decent fund management is having "own skin in the game".
If you get to live under the bridge, the manager will accompany you.
 
I'm not sure I agree with the comment about the High Water Mark. I will say it is a fair question to ask, "What percentage of the Fund is a direct investment of Management." There is your skin in the game.
HenryAvery said:
HWM might be an incentive for high performance but is also an incentive for high risk.
A very effective incentive for decent fund management is having "own skin in the game".
If you get to live under the bridge, the manager will accompany you.
More...
 
And what about hurdle rate? I think it should be mandatory.

By the way, do you think HF or CTA's with 0/20 can survive? High fixed costs without 0% management fee adds more pressure...
 
jordi742 said:
And what about hurdle rate? I think it should be mandatory.

By the way, do you think HF or CTA's with 0/20 can survive? High fixed costs without 0% management fee adds more pressure...
More...

I doubt it. Regular 2/20 already struggles surviving.
 
You must log in or register to reply here.
Back
Top