Pass through model is pretty simple to be honest - instead of charging 2% management fee the "pod shops" pushing through all costs (employees, IT, marketing) into fund returns. It can be 5%+. It works as long as gross returns are good enough, which is a function of leverage partly.
Very interesting Rupak - what a business! I'm going to have to read some of your back issues to understand the pass-through compensation model.
Pass through model is pretty simple to be honest - instead of charging 2% management fee the "pod shops" pushing through all costs (employees, IT, marketing) into fund returns. It can be 5%+. It works as long as gross returns are good enough, which is a function of leverage partly.
Thanks