And, of course, a typical “2 and 20” management fee means that a hedge fund takes 2% of your total portfolio each year, no matter its performance... plus 20% from any profits it might make you. That adds up to real money quickly, no matter your portfolio size. And most hedge funds won’t even look at investors who aren’t willing to invest seven figures. For example, if an investor put $1 million in an average hedge fund last year, they’d expect to pay $20,000 no matter what happens to their money... and an additional $15,000 if the fund they chose returned that average 7.8% figure – again, massively underperforming the market. That $35,000 eats up nearly half – 44% – of the average hedge-fund gains for someone with a $1 million portfolio. It’s a bum deal for most Americans. “We try to do a lot better than that,” says Root. “Our portfolio
alike ‘trim the flowers and let the weeds grow’ simply because their best names are now a bigger part of the portfolio. “At the same time, we’re also prudently managing risk, keeping the portfolios fresh and investing in portfolio protection. And we’re being tactical with our trading, while still maintaining a focus on our long-term goals. “It’s been a fun job, and it’s also a challenging one that I take very seriously. We’re laser- focused on producing excellent long-term results to lots of folks without charging them an arm and a leg.” It’s pouring as we land at the small airfield near Baltimore – a relentless, sideways- whipping torrent that competes with a heavy fog to see which can soak your suitcase the most on the walk between the plane and the airport. It’s miserable weather, and that means the closest Uber is 15 minutes away – a long time to stand in the deluge of wet.
But Root’s infectious grin is back. “Share a ride?” he offers. It might be raining, but his returns are good. His readers and subscribers are making money – more than they would if they followed most of Wall Street’s advice. He and his card-playing partner lost a game of spades but won two. And he’s finally home.
strategies are really a ‘greatest hits’ versions of all the great research that’s being done at Stansberry Research. I identify the most attractive opportunities from all that our team is recommending, and then size up our best ideas. And then, importantly, we let our winners run. Too often, individual and institutional investors
Pull quote. pull quote. pull quote. Pull quote. pull quote. pull quote. Pull quote. pull quote. pull If you’re interested in how Austin Root serves as a portfolio manager for 20,000 Americans fed up with the typical Wall Street way of doing things, learn more here. His readers no longer need to worry about if their investments are properly hedged... or if they’re unknowingly exposed to risk... or even if they’re staying on top of when to buy more or sell. And better yet, you stay in complete control of your money. quote. Pull quote. pull quote. pull quote. Pull quote. pull quote. pull quote
American Consequences
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