003f Which Investment vehicle ?

Chapter 3f of 'There are no grown ups'

The strategy of maximum cynicism

One way to look at the structure and pricing of investment products is to begin by putting yourself in the shoes of the money manager, and then assume that the investor’s interests are likely to be the opposite of what makes life comfortable for the money manager.   When writing this chapter, the temptation to rush out and set up a VC business was almost overwhelming.  For the manager, the possibility of, de-facto, pocketing 50p of every pound that comes in for investment, is an attractive one.  Especially when most, if not all, of that 50p is funded by tax breaks which distract the investor from how your game is played.