NEW FLEX FEE PROGRAM – WILL HEDGE FUNDS FOLLOW
Hedge funds usually receive a 2 % annual management fee and a 20% performance fee but, Eugene Steele CTA points out that this is changing. Steele who is a commodity trading advisor announced today “I have a new payment program for some future clients who want to trade the Forex market. I am changing the way I charge for services and expect that some hedge funds will follow my lead. There is no management fee. No freeze and no performance fee unless there is first an agreed profit paid to the client. Once the client gets there money at the agreed rate a performance fee is taken for any additional profit. In the past mangers were paid 2% and there was no positive performance.”
Steele refers to this new all or nothing as a flex fee program which is only offered to accredited clients. “I think this is an industry change and the best deal for the client. The client knows that if any money is earned it will first be paid to them. Some of the percentages are large and in the range of the top 10 hedged funds returns. So the commodity trading advisor must believe that he can have a high enough return to pay the client first. The percentage I offer is 3.6% a month on the initial investment“. In the old days commodity trading advisors would share in the losses and that was fair. I think this is also fair and will be well received by investors in alternative investment programs. Trading involves risk and the minimum 3.6% a month may not be reached or money can be lost.
Off-exchange foreign currency trading (Forex) involves significant risk of loss and is not suitable for all investors. Steele may be contacted in Fort Lauderdale, Florida at 954 548-6690 or info@steelecta.com.
Business | December 14th, 2009
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