how is a money manager paid 
money managers typically charge management fees ranging from 0 5 to 2 per annum depending on the portfolio size for example an asset management firm may charge a 1 management fee on a 1 million portfolio in dollar terms this equals a 10 000 management fee 1 000 000 x 1 100 asset managers and hedge funds may also charge a performance fee which is remuneration for generating positive returns performance fees typically range between 10 and 20 of the fund s profit for instance if the fund charges a 10 performance fee and returns 250 000 profit the client pays an additional 25 000 in fees 250 000 x 10 100 real life example of a money managerexamples of leading money management firms that accept retail investors funds include vanguard group inc pacific investment management co pimco and j p morgan asset management famous individual money managers include warren buffett of berkshire hathaway and bruce berkowitz of the fairholme fund 