Just What Do Hedge Fund Honchos Do For a Million Bucks an Hour?

[KharmaTrain]

5. Fund Managers Also Work On Commission...

...getting their fee from a percentage (1 or 2%) of the portfolio value. So if they do well and the fund increases in value their commissions increase accordingly...if they pick a loser and the fund falls, their take also goes down. I'd avoid any broker who had set fees...or makes their money off transactions (common in many funds). Unfortunately members in a pension funds have little say on who controls those funds or who they're invested with and thus those who handle the money are removed from those who the money really belongs to...and that's where the gambling games begin...