Re: It\'s time for poker players to start putting their money to work.
[ QUOTE ]
[ QUOTE ]
I like the idea. Plus I need a place to hang my 7 before it expires. To build trust and establish a good rapport you could align the incentives by charging a fee based on the growth of customer assets. We don't make money unless you make money, so to speak. Could revolutionize the industry.
[/ QUOTE ]
This is how hedge funds operate. It is a bad model for a financial adviser. They may be willing to take much larger risks (even -EV ones) with your money in the hopes of a big payday. Thats bad.
A much better model IMO is a flat fee per hour or a % of assets per year, regardless of performance. If you aren't happy with the services (not Scorpian per se, any adviser) just fire them.
[/ QUOTE ]
Not totally true in the hedge fund world. Management fee is fixed and can be a significant source if income for a decent sized hedge fund.
|