Correct. What Alex Waisleitz is doing is basically theft....

Correct. What Alex Waisleitz is doing is basically theft. Markets naturally go up and down, meaning TEK naturally goes up and down. And Alex collects 20% of the fees everytime it goes up from a previous down. So when the stock went from 36 cents NTA to 50 cents, Alex coillected 3 cents per share of fees. Now the stock is back at 36 cents NTA. So when it goes back to 50 he'll collect another 3 cents per share of fees.
It iis an outrageous scam. It menas his investments trade at a 40% discount to where he buys them in TEK, so by buying the stock he gets to buy his own investments at a 40% discount to the price he pays. And when he buys stock he doesn't care about the TEK fees because they all go to him anyway,.

TEK and TOP run by Melbourne poster boy Alex Waislitz. He charges a base fee of 2% of assets under management. And then he charges 20% fees on any return above zero. And if it goes down, the base is reset to the lower mark where he can again earn the 20% fees.So, as a hypothetical example, he could manage $100 m which goes up 20% 1 year, then down the same the next, and then up 20%, oscillating for 10 years back to $100 m.
At the end of 10 years he will have collected $20 m in performance fees, and the fund will have made precisely zero.The fund is an absolute classic: it listed at 22 cent in Jan 2017, is now trading at 24 cents, so its underperformed the ASX by 45%, it is trading at a 40% discount to Net Tangible Assets (NTA). The only buyer of the stock is Alex Waislitz who owns 20% and is buying most days.

So, what he does is raise some money off some idiots who don't realise the only one that can win from TEK is him. He then genuinely tries to make some good investments, earns a heap of fees for underperforming the ASX from the natural volatility in the mkt, and then he gets to buyback his own investments in his personal account at a 40% discount to where the fund buys them! And he doesn't care about the fees being paid by TEK because they all go to him anyway.

So he makes money from TEK about 4 different ways and is just basically ripping off unsophistcated investors.

He has the gaul to say at every shareholder meeting he doesn't know why the stoclk is trading below NTA. It is pretty bloody obvious. The fee structure means investors in TEK willl never make any money. Those who did the placments at 40 cents are down 40%.