If you pay peanuts you will get monkeys. At the same time though, if you pay better than peanuts but you still get monkeys, then there is still a problem. The fees you pay should generate value for money for you. This means you should pay the Managers who can generate alpha for you but cut those who don’t. Alpha generation is not easy, there is definitely a lot of monkeys out there getting paid a lot for not a lot of value.
Henry is a co-founder of MF & Co. Asset Management with over 12 years experience as a trader, investor and asset manager. Henry’s focus is on High Net Worth Wealth Management and using algorithmic quantitative trading systems to invest for his clients. Henry also trains new Interns and Advisers on trading and risk management.