Email from McComas, page-16

This is actually incorrect, it is worse.

Lets say they achieve 10% net p.a return for their investors over time, this means they need to be generating gross returns of closer to 13% p.a pre fees. This is because 1.5% is lost to management fees and another 1.7% for performance fees.

So their fees chew up ~25% of returns generated for investors. If investors believe VGI add no value whatsoever, then fair value should be a 25% discount to NTA (and in reality even more because there are additional G&A fees on top that you don't get with an index).

Personally, I believe they're likely to generate even lower returns p.a for investors, which makes the fee burn equation even worse. If they generate 8% gross returns going forward, investors receive a 5.5% net return and fees chew up 30% of returns.