What CTA fee structure you like the most?

What Fee Structure you like the most?

  • 1.

    Votes: 6 11.5%

  • 2.

    Votes: 2 3.8%

  • 3.

    Votes: 0 0.0%

  • 4.

    Votes: 1 1.9%
  • Total voters
    52
Quote from dabao91:


Now, if 2/20 is much better than 0/25, please explain to me why 18 voters voted for 0/25 and only 7 voters voted for 2/20?

Thanks.
More...

People thinking from the perspective of an investor?
 
3 possibilities:

1. They answered from the perspective of an investor- most likely choice

2. They are dumb and either can't do basic math or have a gross misunderstanding of the reality of the business in terms of performance.

3. They considered the capital raising effect as it relates to the fee structure. I didn't think the question is that involved, however, I really don't think there is any benefit from a capital raising perspective for 0/25 vs. 2/20.

From the CTAs perspective of strictly maximizing fees within a saleable structure, there is no contest between 2/20 vs. 0/25. That said, 5/0 is the best structure for maximizing fees if one has no regard to capital raising.
 
It looks like we have 4 voters voted for:

1. 5%/0% --- only 5% management fee, no incentive fee.

what are your mainly reasons?
 
Only one voter voted for option 4 "0%/20% --- 0% management fee, 2o% incentive fee WITHOUT High-Walter-Mark and no hurdle" ?

Why?
 
5 / 0....What´s the incentive for the manager to "perform" if you have "safe" 5 % p.a. ? In effect it´s "risk free" money for the management, isn´t it ?
 

5 / 0....What´s the incentive for the manager to "perform" if you have "safe" 5 % p.a. ? In effect it´s "risk free" money for the management, isn´t it ?


Well, if the manager does not perform, the investors will eventually withdraw their investment and close accounts...... I think manager still have to perform ...... What do you think?
 
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