I've had request from other people to manage their accounts. Now, apart from the technical and legal issues, if you accept a mission like that, how do you commission yourself? I fixed amount daily, weekly, monthly, regardless of results? 0 in case of loss, a percentage in case of gain? Other plans. I'ld like to know from people who manage multiple customer accounts. Thanks TFD
what do you mean? 20% + 2% on principal. ? Could you please explain a little bit more in detail ? 20% on the profits? on what time basis? What in case of losses? 2% on principal? That's the "entry fee" when you accept the account? Or to be even more specific, how about an example? Somone steps in with 100k. For the next 4 months your results are: -5 +10 -3 +8 What would your commision look like? Thanks TFD
The 2% is what they are paying you for the privledge , honor ,and opportunity , of letting you gamble with thier money. Now, if you are really really good, that's probably a bargain. The 20% is on the profits you will surely make , and is there to keep you honest, so you don't just shove the money into t-bonds and go lay on a beach in Tahiti.
Right, 20%(net of commish) above high water, 2% of principal paid for the year, front-loaded. After payment of the $2k load, around $1500 would be due. The high water mark would begin at $100k, although the account would be funded with $98,000 after the fee. I am not in he habit of underwriting accounts, so I do not participate in any losses. Mgmt. fees are due the fist week after the end of quarter. riskarb