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"[Fund] managers don't get paid for delivering performance, they collect a fee from investors regardless of the amount of money they make for their client. The amount of money they make depends on the size of assets that are under management. "
Cramer (is it really worth commenting on him?) is talking either about the portfolio manager or the management company. I doubt it's the former, because there are often all sorts of incentives put in place for portfolio managers. Also it seems he's referring to the management company fee (what appears as part of the ER, and is paid by the investor) because that's the fee that's directly coupled to AUM.
Even here he's wrong. A minority, but a significant minority of funds have management (company) fees tied to performance. The family with the largest number of funds having performance based fees is Fidelity. A family with a particularly large performance adjustment factor is Bridgeway.
In 2012, BRAGX sported a -0.47% ER, due to prior poor performance. Let's see an index fund pay you to invest with them.
Hi JohnN! I saw this in CNBC also...he says the same thing Buffet says on this while Jimbo makes me laugh. Sometimes he really says something worthwhile. The S&P Index I think is the way to go. It's just easier. I own less and less funds....only the managers matter. It's like an all-star team of proven players. Never forget Jimmie is making a check by doing this. Been awhile so I will ramble...speaking of Ramblers, Back in Black & white TV, my friend had one (a car----Rambler). Heading for mid caps ASAP with money from things I've sold at record highs. Like to sell them...makes me look smart for a day or two. Have you seen the difference between FSENX and LCPAX on a graph in the oil slide? Stunning! That's what Duke says and I have to agree. MLPs, learning as I go. Back to Ramblers: does anybody remember the Studebaker Hawk? Yea, the studs and super hawks....well, long ago. Must stop now....have to get a cold one. Many cold ones lead to more rambling.
As I said before, mid caps are where I'm going for the best run companies in the US. I used to work for one. We were a good, well-run family small town-ish business. We were bought out by a large conglomerate, and I have watched it crash. Since then, mid caps are teenagers. They walk with confidence and promise. They believe in themselves and will work to make good things happen. As your sons and daughters are the future, so are these. Europe ah Drogie....his time has come to do something. This is the year you know. The pot thing....do something or get off or roll one and space for a while. Have bought a fund for mid caps, PVSAX, a while back. Thought it was mid. Now I see large cap....Gee! Can't trust anybody anymore. Things move around. Have sold 4 funds, overweight healthcare and energy. Soon mid caps will sell Europe as soon as Drogie does something in whatever it takes. I think they will mostly fail because they talk too much and sit on the pot. That said, I think next year will be good. Things are getting better....more people working, more have insurance, more money coming to the US from the rest of the world. Again, I don't think we know how bad the crash of '08 really was. So, to wind down this big blow...we are the best in the world. So, again, I see sunshine and blue skies....so, party on dudes! Rising interest rates.....it's like a 3 - 2 pitch with bases loaded in the 9th inning. It's what we all wait for. Rev the Stud Hawk up and buy the dip. I think it will be coming as all the pros run helter skelter....yea, yea, yeah!....I love it. This must end now. Too many cold ones. Words that I've never forgotten. Boy, do something good with your life....something better than I've done. Better than your grandfather did. It's what makes a nation great and the world a better place. God bless! The Pudd
If you are interested in mid-cap investing, simplify your life and your portfolio returns by buying VO - the Vanguard midcap ETF fund. It will outperform 95-98% of mutual fund mid-caps and eliminate MF expense ratios, market cap creep, paying yearly taxes on ST and LT capital gains from MF portfolio turnover, etc. The best part?? The longer you hold onto VO the greater its degree of outperformance because of the above-mentioned factors that siphon off a portion of your profits from positive (if applicable that given year) MF returns.
I'll pay a mutual fund manager, but I won't pay a financial advisor, both payed on amount of money you have invest (not performance you say)....Go figure
and, this one where the Avanti broke 29 speed records to become the fastest factory stock production car of its day ... however, back in the day, they sold for about twice the price of a Cadillac.
Hi Old Skeet! Andy Granatelli! Yeah, I remember that name. He was a racer, you bet! The car I've seen but don't know about it. The Super Hawk....I don't remember what made it so anymore. You ask a lot from so long ago....4 barrel, heads, cams, stick or pozzi....don't remember, but the guy also had a Lark. Nice car! It had a good reverse half life (family) 2 became 4 you know the drill. Also, I remember seeing my first GTO----hell yeah!! The guy would go to work with my friend's dad. We would tease him to light it up. Oh, yeah, hell yeah!! Smoke billowed from the fenders as the tires screamed....it went sideways...gears were yanked....the first hot rod I saw. American Iron----the best there was. My friend also owned a Yanko-Camaro. Do you know what that is? the Pudd
Comments
Cramer (is it really worth commenting on him?) is talking either about the portfolio manager or the management company. I doubt it's the former, because there are often all sorts of incentives put in place for portfolio managers. Also it seems he's referring to the management company fee (what appears as part of the ER, and is paid by the investor) because that's the fee that's directly coupled to AUM.
Even here he's wrong. A minority, but a significant minority of funds have management (company) fees tied to performance. The family with the largest number of funds having performance based fees is Fidelity. A family with a particularly large performance adjustment factor is Bridgeway.
In 2012, BRAGX sported a -0.47% ER, due to prior poor performance. Let's see an index fund pay you to invest with them.
I saw this in CNBC also...he says the same thing Buffet says on this while Jimbo makes me laugh. Sometimes he really says something worthwhile. The S&P Index I think is the way to go. It's just easier. I own less and less funds....only the managers matter. It's like an all-star team of proven players. Never forget Jimmie is making a check by doing this. Been awhile so I will ramble...speaking of Ramblers, Back in Black & white TV, my friend had one (a car----Rambler). Heading for mid caps ASAP with money from things I've sold at record highs. Like to sell them...makes me look smart for a day or two. Have you seen the difference between FSENX and LCPAX on a graph in the oil slide? Stunning! That's what Duke says and I have to agree. MLPs, learning as I go. Back to Ramblers: does anybody remember the Studebaker Hawk? Yea, the studs and super hawks....well, long ago. Must stop now....have to get a cold one. Many cold ones lead to more rambling.
So, to wind down this big blow...we are the best in the world. So, again, I see sunshine and blue skies....so, party on dudes! Rising interest rates.....it's like a 3 - 2 pitch with bases loaded in the 9th inning. It's what we all wait for. Rev the Stud Hawk up and buy the dip. I think it will be coming as all the pros run helter skelter....yea, yea, yeah!....I love it. This must end now. Too many cold ones. Words that I've never forgotten. Boy, do something good with your life....something better than I've done. Better than your grandfather did. It's what makes a nation great and the world a better place. God bless! The Pudd
If you are interested in mid-cap investing, simplify your life and your portfolio returns by buying VO - the Vanguard midcap ETF fund. It will outperform 95-98% of mutual fund mid-caps and eliminate MF expense ratios, market cap creep, paying yearly taxes on ST and LT capital gains from MF portfolio turnover, etc. The best part?? The longer you hold onto VO the greater its degree of outperformance because of the above-mentioned factors that siphon off a portion of your profits from positive (if applicable that given year) MF returns.
Yep, I remember the Studebakers ... Hawk, Super Hawk but most of all the Avanti.
Perhaps these links will be of interest ...
http://www.studebakerdriversclub.com/index.asp
http://www.streetsideclassics.com/showcar.php/atl/1866
and, this one where the Avanti broke 29 speed records to become the fastest factory stock production car of its day ... however, back in the day, they sold for about twice the price of a Cadillac.
http://www.theavanti.net/bonneville.html
Old_Skeet
Andy Granatelli! Yeah, I remember that name. He was a racer, you bet! The car I've seen but don't know about it. The Super Hawk....I don't remember what made it so anymore. You ask a lot from so long ago....4 barrel, heads, cams, stick or pozzi....don't remember, but the guy also had a Lark. Nice car! It had a good reverse half life (family) 2 became 4 you know the drill. Also, I remember seeing my first GTO----hell yeah!! The guy would go to work with my friend's dad. We would tease him to light it up. Oh, yeah, hell yeah!! Smoke billowed from the fenders as the tires screamed....it went sideways...gears were yanked....the first hot rod I saw. American Iron----the best there was. My friend also owned a Yanko-Camaro. Do you know what that is?
the Pudd