COMMERCE 3FH3 Lecture Notes - Lecture 1: Performance Fee, Management Fee, Interactive Brokers
19 Oct 2020
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Margin account: means you can buy with leverage. Cash account: no leverage possible, can only buy with money on hand- some accounts require it to be a cash account ie. your rrsp, tfsa, etc. Traditional: etfs - packaged investments that allow regular investors to access alts, passive - not actively managed by a firm. Long - buy first, sell later: must cater to retail investors or pensioners, mgmt fee (higher than alts mgmt fee) Alts: hedge funds, private equity funds (lbo, vc), infrastructure/real estate, commodities (ie. agriculture, oil, gold, etc. Investors (want to invest in a fund: pooling together funds so you can diversify your portfolio (esp. in the case of very expensive shares like amazon (k) or berskshire hathaway (k). Sometimes there"s a "hurdle rate" (only after the fund earns over a certain percentage of profit does it do the profit sharing) Sometimes there are upper limits to how big you can grow.
