Flexibility and transparency for stable growth in investment profitability.
New capital management model:
Increased adaptability: The ability to flexibly respond to market changes by reallocating assets to optimize returns.
Compliance with global standards: Use of widely accepted mechanisms that enhance investor trust in the fund.
Attracting and retaining clients: More attractive terms promote loyalty among existing investors and attract new ones.
For the fund:
Transparency: Clear payment terms tied to performance.
Risk reduction: The fund focuses on capital preservation during unstable periods, reducing the likelihood of losses.
Flexibility of returns: Potentially higher returns during market growth periods without fixed-rate limitations.
For investors:
Benefits of the new profit
distribution model
distribution model
Net profit for the month: +30%
$30,000 - Performance Fee 40% = $18,000
Capital under management: $100,000
Example:
Charged as a percentage of profits and ranges from 30% to 40%, allowing investors to be directly involved in the fund's success, achieving higher returns during productive periods while reducing profitability during less favorable times.
Success-based reward
Performance Fee
Management Fee: $6,000 per year; $500 per month.
Capital under management: $100,000
Example:
Covers the operational and transactional expenses of the capital manager (fund) and amounts to 6% of the capital under management per year, or 0.5% per month.
A fixed management fee
Management Fee
Hedge funds use a two-tier
reward model:
reward model:
Data and analytics
Real-time access to data
Data and analytics
Real-time access to data
Results for the $100,000 account
Results for the $100,000 account