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A self-directed brokerage account is the same kind you or I might use and has the same types of stock investing options, including individual stocks, exchange-traded funds, options trading, mutualfunds, bonds, and real estate investment trusts (REITs).
The combination triples infrastructure AUM and doubles private markets run-rate managementfees. This was due to the relative outperformance of lower fee U.S. equity markets and client preferences for lower fee U.S. The closing of GIP added $116 billion of client AUM and $70 billion of fee-paying AUM on October 1.
RITHOLTZ: It’s mutualfunds. It’s hedge funds. And all these formally high performers are now just so big, they’re very happy collecting the managementfee and the performancefee matters less. And how has this gap persisted for so many decades? It’s private equity.
billion was 7% higher year over year, driven by the impact of higher markets on average AUM and higher performancefees. Fourth quarter and full year performancefees of 311 million and 554 million, respectively, increased from a year ago, reflecting higher revenue from liquid alternatives and long-only mandates.
For example, more sophisticated hedge funds typically charge a flat managementfee of 2%, coupled with a performancefee that takes 20% of annual profits. It's not difficult to realize that over time, a large chunk of client capital in these funds gets eaten up by fees.
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