Freelance writing - business, technology

Sharon Rockey is a freelance writer and editor for print and on-line media. She writes for business, finance, technology, lifestyle and the arts. Visit her on-line portfolio and contact her for your next project.

Prior to the launch of a client's Hedge Fund Website, we wrote a series of e-newletters that covered fund basics, compared the fee structure to those of Mutual Funds, and because a portion of the Hedge Fund profits would go to environmental causes, we covered the trend in ethical investing. 1.Taking the Mystery Out of Hedge Funds 2.Mutual Fund Fees: Small Print, Big Teeth 3. Got a New Attitude: All About Ethical Investing 4. Mutual Funds:Where's the Incentive to Perform? 5. Anatomy of a Hedge Fund 6.When Hedge Fund Managers Become Business Partners 7. Get the Hedge Fund Edge 8. What About the Hedge Fund Manager? When Hedge Fund Managers Become Business Partners By Sharon Rockey In our earlier newsletters, we explored the complex and vague fee structures of mutual funds and couldn't find anything to indicate that the mutual fund manager was on your side. Those managers get paid based on total assets under management, not on how well they perform for you; never mind that whole other slew of fees you will get charged. Now let's compare the management of mutual funds to Hedge Funds and see which manager has more incentive to increase your wealth. Unlike mutual funds, Hedge Fund managers invest a significant amount of their own money into the funds right along with their investors. They charge a clearly defined management fee, plus have a built-in incentive fee structure whereby managers receive a fixed percentage of the profits. Some Hedge Funds go a step further. The management team at [company name temporarily withheld] a Hedge Fund soon to be offered, offers a pay for achieved performance fee structure. In most cases they do not charge a management fee. Instead they share in the fund's success and distribute 70% of the profits to investors. But they will not receive any incentive compensation unless the client sees a profit. What seems more reasonable to you? Paying fees to someone for losing your money or sharing in the profits with a partner? When investor and manager interests are the same, you are dealing with someone who has a clear incentive to performÑa business partner as well as an investment manager Next--> Get the Hedge Fund Edge