Just would like to ask more experienced people here- is that normal for fund managers and/or prop traders to look for performance fee based on the difference between actual fund/portfolio performance and some chosen benchmark? For example, if I made 12% in 2005 for the portfolio mainly comprised of US ETFs and stocks, vs. 3% S&P-500 performance, would it be normal to get performance fee, say 20%*(12%-3%)*portfolio size ? Or maybe 10% or 15% of this difference? Or to use another benchmark? Or only absolute performance is awarded in this business? Thanks in advance for replies.