This is the facinating part of GQG. They are looking at revolutionising the industry by playing by a different rule book. Yes they forgo outformance fees, but make up for it with scale.
As I said previously, to what extent has historical active management performance been eroded by captured out performance fees.
Remember the hedge funds 2 and 20 model. Many have not been able to sustain their books over the long term because of the '20' capturing a big chunk of the out performance, and when they under perform they still charge the '2'. As a result manage hedge funds have under-performed over the last decade.
Hedge fund investing was all the rage when Buffet make his famous 'index funds will out perform hedge funds bet'. More than a decade later, the longer term results are showing that Buffet was right.
I am not bagging MFG, its been a very well run company. But so many industries are being revolutionised. Look at what Amazon has done for retail, google and face book for advertising. In the new world, scale really matters, and maybe this is GQG's vision.
MFG Price at posting:
$34.09 Sentiment: None Disclosure: Not Held
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