Would you manage OPM without an asset management fee?

Discussion in 'Professional Trading' started by ginux, Apr 25, 2007.

  1. ginux


    If someone offers you $ to manage but your only payback is the % from the profit, would you accept the deal?
  2. Sure. Instead of a "standard" 2 & 20 deal, go for atleast a 0 & 30 arrangement provided that the amount of assets is substantial.
  3. Please. You're sitting in your den tinkering with stocks. 30% to compensate for zero mgmt fee? lmfao.
  4. Oh my! You're a funny chick. Ha ha, I'm in my den. You're in your smelly dorm room taking a break from your calculus homework. If it's not asking too much, please answer the original poster's question.
  5. I think you should a -20% and 50% deal.

    Be a trend setter.
  6. I would set the % at least at 30%. The higher you go, the more motivated you will be and you need to explain that to the potential client(s). I would actually prefer this over a small yearly mgmt fee and a smaller % of profits.
  7. Negotiate for whatever you can. If the profit sharing % will cover your incremental costs of managing the money and leave you with a profit, you have nothing to lose.
  8. Yes, I used that model a few years ago for managed accounts, with a sliding scale perf.fee of 33% decreasing to 20% dependent on a/c size. It's fine if your overheads are insignificant.
  9. zdreg


    high watermark clause?
  10. ginux


    Ok. Let's say they offer you 40% profit.

    But there's a condition that if the drawdown exceeds 40%, you have to liquidate at once and return the funds.
    #10     Apr 26, 2007