I have no short positions.
in regards to capital. Outside investors get a share of income based on their contribution. OBL gets a share based on its capital contribution. However OBL carries all the overhead related to managing the portfolio (hundreds of staff across 23 offices). This is fundamentally a bad business model. Management fees should be designed to cover this overhead but the way OBL has set it up, the fees are not even 10% of the cost base.
As I have said in a previous post, typical asset managers with this amount of FUM would have <10 employees in 1 office.
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