Fee Structure as Values Expression

"He charged no annual management fee, but took a quarter of the profits above a 6 percent hurdle. This is an extremely unusual structure, but it’s the best alignment I’ve ever seen between an investor and his shareholders. It truly embodies the principle of making money with them, not off them. Unless they do well, the fund manager earns nothing."

"the new share class, they would pay no annual management fee, and I wasn’t entitled to receive an incentive fee until after they had received a 6 percent annual return on their investment. Above that hurdle, I’d receive a quarter of the profits, getting handsomely compensated only if my shareholders did well too."

"Buffett wasn’t aware that he was having this impact on me, but he set such a great example with his own fee structure that he made me want to treat my own shareholders more fairly. This was part of the power of the mere expectation of meeting him. There’s a joke on Wall"