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Will Danoff Leaves Fidelity Contrafund To Manage Sequoia Fund
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
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.
Comments
Regards,
Ted
http://www.vox.com/2016/4/1/11340608/april-fools-day-pranks-explained
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.