You Have to Attack the Incentive System: Aperture's Kraus

The video discusses the founding of Aperture, a firm that links manager pay to performance, aiming to address persistent performance challenges in the active management space. It explains Aperture's recruitment strategy, which focuses on managers with a history of strong performance, and details the firm's fund structure, which includes a modest base fee and a performance fee. The video also compares ETFs and mutual funds, highlighting differences in fees, tax efficiency, and trading practices.

What was the main idea behind linking pay to creating alpha?

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What challenges do larger asset managers face in terms of performance?

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How does the incentive system at Aperture differ from traditional mutual funds?

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What are the implications of tracking errors in ETFs compared to mutual funds?

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What potential changes could be made to mutual funds to enhance their trading efficiency?

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