Hedge fund managers

In the book Pit Bull, Martin Schwartz was offered 6% management fee and 20% performance by the Elders Futures Inc.

So, if Martin Schwartz gets 6% and 20%, how does Elders Futures Inc. make money?

 

commissions, fees, and most importantly, interest income on the accounts..

 

If I'm not wrong, the 6/20 commission is based on the fees/commissions Elders Futures gets, not on the total investment capital.

 

Thanks for the replies.