FIRM OVERVIEW
Firm Structure
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Bossert Capital manages all our clients’ capital using a single investment strategy that is suitable for clients with a long-term time horizon.
Bossert Capital is a Registered Investment Advisor (RIA), and we manage our clients’ assets via separately managed accounts. We believe this is a superior and more investor-friendly model compared to the co-mingled hedge fund (limited partner / general partner) structure.
All accounts are held directly in each client’s name and our clients retain full custody of their assets at Interactive Brokers. This structure is simpler – it allows for full transparency, daily liquidity, and customized reporting.
Our partners do not incur expenses typically associated with a hedge fund, such as audit, tax, or administration fees.
We impose no legal restrictions and have no lockup or gates.
Fee Arrangement
Bossert Capital’s fee structure is modeled on the 1950’s and 1960’s Buffett Partnership model.
We charge no management fee, only a performance-based fee to eligible clients. Such clients are not charged any fees whatsoever until we exceed a 6% annual return. After that, we share the profits, with one-quarter going to the investment manager and three-quarters going to our clients.* With this fee structure, our clients do not pay a penny in fees unless we earn our clients over 6% per year. We only get paid if our clients earn a satisfactory return.
Furthermore, there is a High-Water Mark, which means if performance is negative in a given year, all losses need to be earned back plus 6% before our clients pay any fees.
This zero-management fee structure is offered to all existing and new clients who meet the Securities and Exchange Commission (SEC) definition of “Qualified Client.” If you do not meet the definition of a Qualified Client, we will have to arrange a flat management fee. In this case, we strive to set the management fee as reasonable as possible.
* In 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 read here.
Alignment of Interests
We seek to align our interests with our clients in every way possible. With our zero-management fee structure, Bossert Capital only gets paid when our clients earn a satisfactory return. Furthermore, Alex Bossert has invested the majority of his net worth right alongside Bossert Capital clients in the same strategy. By aligning our interests with our clients in every way possible, we seek to grow our net worth side by side with yours, never at your expense.