strategic placement with socius cg11, page-5

Yes, but with the normal fees charged been 2% of funds under management, and 20% of profits made, they'll make substantially more if they do turn a profit. Otherwise you're basically just living off management fees.

With that said 2% of a few billion under management still makes for a sizable sum for the guy at the top. There's still the incentive to make money though- if nothing else, because if you lose money, your 2% fees next year will come from a smaller 'pot' of cash.