Insightful article from mr. Jaye.

One thing;
Mr. Jaye concludes that the performance-fee structure of Hedgefund managers can lead to an increasing probability of blow-ups.

Does this mean that every percentage-based managementfee increases the bow-up probability?

Every manager earning a percentage of aum, is using an performance-fee. Altough this not "officially" called a performance- fee, these managers benefit from performance, the same way as a so called performance fee.

Next interesting question, does mr. Jaye's departement profit from aum by earning a percentage?

Best, Jaap