Are Index Funds Eating the World?

Re:Are Index Funds Eating the World? by mysterypie on Saturday August 27, 2016 @05:02AM (#12371634)

> asset managers are paid for getting more assets under management, not their fund's profits.

I've always wondered why they aren't paid a percentage of profits? That would align their interests with the customers'.

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Re:Are Index Funds Eating the World? by OscarCunningham on Saturday August 27, 2016 @05:35AM (#12371695)

They're generally paid both. They often charge "two and twenty" meaning 2% yearly of the assets under management and 20% of the profit. (Of course they don't absorb 20% of the losses in a bad year)

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Re:Are Index Funds Eating the World? by smallnamespace on Saturday August 27, 2016 @08:56AM (#12372157)

That's only hedge funds, which are a small fraction of total fund capitalization.

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Re:Are Index Funds Eating the World? by OscarCunningham on Saturday August 27, 2016 @07:15PM (#12374604)

What are the percentages of the market occupied by different fund types? Where would I go to look that up?

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Re:Are Index Funds Eating the World? by smallnamespace on Sunday August 28, 2016 @11:54AM (#12376989)

http://www.hedgefundfacts.org/hedge/wp-content/uploads/2009/...

Page 4

"Hedge funds as a percent of total: 1.1%"

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Re:Are Index Funds Eating the World? by janpieterz on Saturday August 27, 2016 @01:09PM (#12373191)

Or even a percentage that increases by the percentage of profit.

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