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#709 How (Not) to Lose Money with Taylor Pearson

Tropical MBA: Entrepreneurship & Founder Lifestyle

CHAPTER

The Hedge Fund Space Fee Pressure

We charge a 1 percent management fee and then a 10 percent incentive fee on net new profits you guys charge 750,000 dollars a year in management fees. We pay there's like regulatory compliance costs and all that kind of stuff that comes off the top we have some like back office firms we work at the operational administer stuff and then we have our team it's like running all the day to helping people get on boarded producing all the statements annual audits all that kindof stuff so it's very much it's an economies of scale It's not right like that the fixed costs are pretty high for funds in general in general startup crossroad hedge fund like you would expect it to be in the millions actually

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