FIRM OVERVIEW
Firm Structure
Bossert Capital operates as a Registered Investment Adviser (RIA) and manages client capital through Separately Managed Accounts (SMAs). We adhere to a single long-term investment strategy across all accounts.
The SMA model is superior to the traditional commingled hedge fund structure (Limited Partnership). It offers distinct advantages in safety, transparency, and cost efficiency:
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Custody & Control: Assets are held directly in the client’s name at Interactive Brokers, ensuring you retain full custody of your funds at all times.
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Transparency & Liquidity: Clients enjoy full transparency into portfolio holdings and daily liquidity. We impose no lock-ups, gates, or complex redemption restrictions.
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Cost Efficiency: This structure eliminates the frictional expenses typically passed on to limited partners in a hedge fund, such as audit, tax, and fund administration fees.
Fee Arrangement
We modeled Bossert Capital’s fee structure on the Buffett Partnership model of the 1950s and 1960s. This structure creates the ultimate alignment between manager and partner.
We do not charge a management fee to eligible clients. Instead, our compensation is entirely performance-based. Partners are not charged any fees until the portfolio exceeds a 6% annual return (the "Hurdle Rate"). Above this threshold, profits are shared, with 25% allocated to the investment manager and 75% retained by the client ¹. Under this structure, we earn no compensation unless our partners earn a satisfactory return.
Crucially, we also adhere to a “High-Water Mark” provision. If performance is negative in a given year, all losses—plus the 6% annual hurdle—must be fully recovered before any performance fees can be accrued again.
Eligibility Note: In accordance with SEC regulations, this zero management fee structure is available to investors who meet the definition of a “Qualified Client.” For partners who do not meet this definition, we offer a competitive flat management fee arrangement.
¹In accordance with applicable state and Securities and Exchange Commission (SEC) regulations, our zero management fee structure is only available to
investors who meet the SEC definition of “Qualified Clients.” The exact definition of “Qualified Clients” can be read here: https://www.natlawreview.com/
article/sec-raises-qualified-client-net-worth-and-assets-under-management-thresholds
Alignment of Interests
At Bossert Capital, we align our interests with our partners in two fundamental ways:
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Significant Personal Co-Investment: Alex Bossert has invested the majority of his net worth alongside clients in the strategy. We "eat our own cooking." This ensures that every investment decision is made with an owner's mindset, prioritizing capital preservation and long-term compounding.
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Performance-Based Compensation: Under our zero management fee structure, we earn no compensation unless we deliver attractive returns for our partners.
By tethering our financial success directly to yours, we ensure that we grow our wealth side-by-side with you, not at your expense.