Alpha Captech will charge a performance
fee for its investment management services because when it is done right
it can create better incentives for all relevant parties. In particular,
Alpha Captech's performance fee is structured so that it only pays for
long-term alpha generation in the fund meaning we only get paid to the
degree that our investment fund delivers better long-term returns than
MSCI's world stock index.
Alpha Captech has produced a white paper
about performance fees that offers a high level discussion about the
merits and risks of performance fees and how to structure them in order
to effectively contain their risks. That white paper is available to
investors at request.