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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (4153)	9/17/1999 6:08:00 PM
From: Matthew L. Jones	Respond to of 18137

Actually, Merrill Lynch charges a percentage of assets under management. Depending on how much money you deposit with them, their fees range from .5% to 2.5% of assets under management. This arrangement is typical of regular brokerages. Hedge funds and private money managers typically charge a performance based fee-- a percentage of the actual gains made in their clients' portfolios. A typical arrangement is more like 20-30% of actual capital gains (regardless of amount under management). By charging this kind of management fee structure, an advisor is limited in terms of the number of clients and the financial qualifications of those clients. Often times the minimum investment with this arrangement is $100,000. Hopefully that makes sense. Matt