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Why isn't a hedge fund's management fee tied SOLELY to overperforming the index?

they don't have as much skin in the game. why should they be...
Charismatic Fighting Ceo
  02/24/18
Because you need to adjust for the risk incurred to do that,...
Bateful den halford
  02/24/18
but from the hedge fund manager's perspective, aren't they c...
Charismatic Fighting Ceo
  02/25/18


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Date: February 24th, 2018 5:09 PM
Author: Charismatic Fighting Ceo

they don't have as much skin in the game. why should they be paid anything if they actually did not perform?

(http://www.autoadmit.com/thread.php?thread_id=3902964&forum_id=2#35479127)



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Date: February 24th, 2018 5:11 PM
Author: Bateful den halford

Because you need to adjust for the risk incurred to do that, among other things.

(http://www.autoadmit.com/thread.php?thread_id=3902964&forum_id=2#35479130)



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Date: February 25th, 2018 2:18 PM
Author: Charismatic Fighting Ceo

but from the hedge fund manager's perspective, aren't they confident they will beat the index? if they're not, why do they have a job?

(http://www.autoadmit.com/thread.php?thread_id=3902964&forum_id=2#35483908)