Hedge fund managers are very lucky, indeed, especially when you look at what a hedge commission charge is all about. It’s the 2% that these managers get for managing your stocks regardless of how these investments perform. The commission may look like a very small percentage, but don’t be fooled.
If the manager is managing assets to the tune of say, one billion, that amounts to twenty million in commission. And all the professional has to do is show up for the job. There’s a reason why all these investment consultants can manage to report for duty in shiny suits and shoes every day.
It’s not only because they can; they can afford to. At the end of the day, it’s all a numbers game. That’s why it makes perfect sense to be in the game early on. The longer you stay, the better or higher the returns get.