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Will Danoff Leaves Fidelity Contrafund To Manage Sequoia Fund

FYI: The devil made me do it ! April Fool !


  • Admittedly, made me look!
  • @reids: Yes, and so far there are a dozen or more who looked, but won't admit it !
  • Click bait, I fell for it...
  • edited April 2016
    Falling for April Fool's gags: It's like the electricity's out, you know it, but you still flip the light switch once in a while out of habit.
  • Ted, that's the best one of my day so far. Good job.
  • I fell for it as well. :-)
  • Good one Ted. I was ready to buy.
  • Ha. Ha. Great April fools.
  • My eyes popped out when I saw this!
  • You got me.
  • I was sure it was April fool but there were 9 comments by the time I saw it so I hoped that some were clever Am a little disapointed in the responses though I applaud Ted's initial post
  • How did we come to associate the first day of the fourth month of the year with an opportunity to take advantage of the more gullible among us? The short answer is nobody really knows.
  • +1 Well played
  • Got me at the start of the day- good one
  • On a more serious note I suspect such a move would result in a large increase iN SEquoia's expense ratio.
  • How come? FCNTX is 30% cheaper than SEQUX as it stands. Signing bonus? :)
  • The management (not ER) fee on FCNTX is 0.56%. On $107B, that's about $600M. Let's say Danoff gets half of that, or $300M. That's not even beginning to count his pay for managing New Insights and lots of other funds.

    SEQUX's management fee is 1.00%, the same as its ER, because the management company is responsible for all the fund expenses (similar to what American Century does with its legacy funds like TWCGX). But for the sake of argument, let's say that Danoff gets to keep all of it. That's still only $55M ($5.5B fund).

    So, if Sequoia stops printing prospectuses and investor statements, stops taking in money and selling shares, stops doing all the other things that fund distributors do, and if its management company stops taking any cut, and ..., then its fee might go up just a tad instead of a whole lot to pay for Danoff.

    Of course, he could volunteer take a pay cut to go back to having fun managing something smaller than a whale.
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