Fees
topic on 4 shows · 7 statements across 7 episodes
Acquired 
Capital Allocators 
All-In 
20VC
7 statements about Fees, every show
Vanguard fund investors structurally vote to lower fees in their own self-interest
“The investors are the board of directors, or elect the board of directors, and thus will always vote
To lower fees when they can lower fees, because it's in their own interest.”
Palihapitiya: Fee-optimizing VC managers will fail to raise future funds
“They'll make a ton of money in fees, but they will not be able to raise funds.”
Lemkin: VC mega-funds derive 40% to 50% of revenue from fees
“Mega funds are all in the business of raising funds every two to three years. And can you stretch it to four? Sure. Right? And these are funds that get 40 to 50% of their revenue from fees”
Basu Trivedi: Most large VC firms generate excess management fee revenue
“Most venture firms have plenty of fees to cover the team and more, especially at that fund size scale.”
Cocke: A $10 billion endowment likely paid $500M in fees in 2021
“I would bet that if you looked at a ten billion dollar endowment in fiscal year, 20, 21, it would shock me if they didn't pay at least Five hundred million dollars in fees in fiscal year, 20, 21. It wouldn't surprise me if it's even higher than that.”
Mauboussin: US Active Equity's $1 Trillion Gross Profit Was Erased By Fees
“The cumulative gross profit, I think we have 35 years of numbers, is about a trillion, trillion net positive gross profit. So gross profit positive more than, you know, ok, is a trillion dollars. Now, that also happens to be about what the fees were in that ti…”
Perold: Generating high alpha for low management fees is a complete misnomer
“For the kinds of skill we're looking for, you need talent, and talent is expensive, so the idea that you can generate high alpha for low fees, I think, is a complete misnomer. Very hard to do... But when you find true talent, you gotta pay them, and I think yo…”